DALLAS, Jan. 4, 2023 /PRNewswire/ -- Pascal Desroches, chief financial officer, AT&T* Inc. (NYSE:T), spoke today at the Citi Media & Entertainment Conference where he provided an update to shareholders.

Desroches made the following points:

The company continues to focus its efforts on driving solid growth in 5G and fiber services, driven by continued high demand for connectivity. While the company does not expect wireless industry growth levels to mirror those experienced in 2021 or the first half of 2022, Desroches indicated that demand remains healthy. The company continues to see solid demand levels via its consistent go-to-market approach despite opting not to be as promotional as peers during the recent holiday selling season.
Looking ahead to 2023, Desroches said he expects the company to maintain its focus on growing customer relationships in a disciplined manner, proactively reducing costs and remaining deliberate in its capital allocation. He said that 2022 and 2023 are expected to be peak years for capital investment as the company continues to invest in 5G and fiber. AT&T remains focused on achieving its 2.5x net debt-to-adjusted EBITDA target and expects to use cash after dividends to reduce debt until that time.
AT&T plans to provide detailed 2023 guidance when it announces earnings later this month. Desroches indicated he expects 2023 free cash flow growth to be supported by wireless revenue growth from a bigger postpaid phone base with increasing ARPUs; growth in fiber subscribers, ARPUs and revenues; and the benefits of ongoing cost transformation initiatives, which are expected to increasingly support the company's profitability. Expected offsets to these trends include expected higher cash taxes and lower cash distributions from DIRECTV.
Desroches reiterated AT&T's commitment to its target of 30 million-plus fiber locations, including business locations, by the end of 2025. The company ended the third quarter of 2022 with the ability to serve 18.5 million consumer locations and approximately 3 million business customer locations with fiber. The company's recently announced Gigapower joint venture gives it an opportunity to expand fiber coverage by an initial 1.5 million incremental locations and provides additional flexibility to further expand its out-of-network footprint over time.

*About AT&T

We help more than 100 million U.S. families, friends and neighbors, plus nearly 2.5 million businesses, connect to greater possibility. From the first phone call 140+ years ago to our 5G wireless and multi-gig internet offerings today, we @ATT innovate to improve lives. For more information about AT&T Inc. (NYSE:T), please visit us at about.att.com. Investors can learn more at investors.att.com.

Cautionary Language Concerning Forward-Looking Statements

Information set forth in this news release 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 future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise.

This news release may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company's website at https://investors.att.com.

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SOURCE AT&T

AT&T CFO Updates Shareholders at Citi Media & Entertainment Conference