AT&T expects to invest at record levels this year to meet growing demand for core connectivity, while also meeting free cash flow guidance for the year in the $14 billion range and continuing to pay an attractive dividend, according to Pascal Desroches, senior executive vice president and chief financial officer.
Speaking at the Morgan Stanley European Technology, Media & Telecom Conference, Desroches said AT&T expects elevated levels of capital investment in 2022 and 2023 with moderated investment beginning in 2024. He said AT&T continues to be pleased with the return profile of its fiber and 5G investments as the company continues to add customers. The company said customer demand for connectivity services remains healthy, although it continues to monitor macro economic conditions.
Desroches indicated that the company’s long-term capital allocation priorities remain unchanged, 95% of the company’s debt is fixed and that he continues to expect AT&T will use cash after dividends to reduce debt, with a goal of reducing net debt-to-adjusted EBITDA to the 2.5x range.
