At&t Inc. · NYSE:T
At&t — Q3 2019 Earnings Presentation
17 slides from At&t's earnings presentation, Oct 28, 2019
Slide 1: AT&T Investor Update
AT&T Investor Update 3rd Quarter Earnings October 28, 2019 © 2019 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the p
Slide 2: Cautionary Language Concerning Forward-Looking Statements
Cautionary Language Concerning Forward-Looking Statements Information set forth in this presentation contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect futu
Slide 3: Delivering on our 2019 commitments
Executing debt reduction plan 2.5x net-debt-to-adj-EBITDA by year end; share retirements begin in 4Q19 Goal — Adjusted EPS low single digit growth: on track to achieve Goal — $26B FCF; now expecting $28B range Goal — $6-8B in net asset monetization; expect to close ~$14B for full year Delivering Gro
Slide 4: 3Q19 Results
3Q19 Results 4 © 2019 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV companies. All other marks are the property of their respective owners. ©are registered 2019 trademarks AT&T Intellectual and service Property. marks All rights of AT&TAT&T, res
Slide 5: 3Q19 Financial Summary
3Q19 Financial Summary $ in billions, except EPS 3Q19 3Q19 Year-to-Date Highlights Adjusted EPS Revenues Cash from Ops Adjusted EPS Revenues Cash from Ops Adj. OI Margin CAPEX Comparative CAPEX Free Cash Flow Free Cash Flow Adj. OI Margin $0.94 $45.7 $44.6 $12.3 $2.68 $135.7 Comparative $134.4 $0.90
Slide 6: 3Q19 Communications Segment
3Q19 Communications Segment $ in billions REVENUES EBITDA EBITDA MARGIN Mobility $17.7 $17.7 Service revenue growth, solid EBITDA, margin expansion Wireless service revenues up 0.7%, up 1.9% year to date EBITDA growth of 1.6%, up 2.2% year to date; EBITDA service margin of 55.7% $7.6 $7.8 Solid phon
Slide 7: 3Q19 WarnerMedia Segment and Latin America Segment
3Q19 WarnerMedia Segment $ in billions REVENUES OI MARGIN OP INCOME $8.2 $7.8 Revenues reflect comparison to strong 3Q18 movie slate at Warner Bros. WarnerMedia led industry with 39 Primetime Emmy Awards and 15 News and Documentary Emmy Awards HBO revenues up nearly 11% due to content revenue gains
Slide 8: 2020 – 2022 3-year Plan and Capital Allocation
2020 – 2022 3-year Plan and Capital Allocation 8 © 2019 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV companies. All other marks are the property of their respective owners. ©are registered 2019 trademarks AT&T Intellectual and service Property.
Slide 9: Investment Thesis
Investment Thesis Key Trends Essential Capabilities 1 Demand for premium 1 Advanced high-speed networks content grows 2 Large base of direct 2 Demand for connectivity customer relationships 3 grows 3 Access to premium content 4 Advertising technology & inventory As a result of prior investments, our
Slide 10: Financial Outlook & Capital Allocation Plan: 2020 - 2022
Financial Outlook & Capital Allocation Plan: 2020 - 2022 Revenue Growth Dividend growth & payout ratio • Revenue growth every year driven by Mobility, Fiber & WarnerMedia • Continued modest annual dividend increases • 1-2% three-year CAGR • Dividends as % of FCF — less than 50% in 2022 Adjusted EBIT
Slide 11: Financial Guidance & Capital Allocation: 3 Year Modeling Perspectives
Financial Guidance & Capital Allocation: 3 Year Modeling Perspectives 11 © 2019 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV companies. All other marks are the property of their respective owners. ©are registered 2019 trademarks AT&T Intellectu
Slide 12: 2020 – 2022 Financial Guidance and Expected Drivers
2020 – 2022 Financial Guidance and Expected Drivers Revenue growth: 1-2% three-year CAGR Capital allocation plan returns ~$75B to shareholders ❑ Wireless service revenues growing 2+% CAGR ❑ Retire ~$30B of shares, in addition to ~$45B of dividends ▪ Subscriber growth from FirstNet & network quality
Slide 13: 2020 Consolidated Financial Guidance
2020 Consolidated Financial Guidance • Wireless service revenue growth REVENUE GROWTH 1% - 2% • Equipment revenue growth from 5G device adoption • WarnerMedia - Advertising growth and HBO Max impact Base Business: $3.75 - $3.90 • Includes significant share retirement HBO Max investment: ($0.15) - ($
Slide 14: 2020 – 2022 Financial Guidance - Adj. EPS of $4.50 - $4.80 in 2022
2020 – 2022 Financial Guidance - Adj. EPS of $4.50 - $4.80 in 2022 2022 Adj. EPS ~$0.20 - $0.50 ~$4.50-$4.80 ~$0.20 ~$(0.10) ~$0.25 HBO Max Growth ~$0.40 2019 Adj. EPS WarnerMedia investment Mobility, ~$3.56 1 Cost reduction synergies WarnerMedia, plan & Mexico Xandr, Share EBITDA growth $2.5B run-r
Slide 15: Continued Board Refreshment
Continued Board Refreshment • 10 new directors joined Board since 2012 • Added relevant skill sets and backgrounds • 2 new directors in next 18 months • Technology executive with experience executing strategic cost initiatives to be added Board and imminently; will join Corporate Development and Fin
Slide 16: Significantly growing revenue, EBITDA, free cash flow and EPS
Significantly growing revenue, EBITDA, free cash flow and EPS Continued investment in growth initiatives Strategic Ongoing cost reduction and operational efficiency Transformation for Significant Long-Term Disciplined capital allocation and attractive shareholder returns Value Creation Portfolio Eva
Slide 17: Q&A
Q&A © 2019 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners.