Fibre and 5G expansion boosts AT&T’s outlook
Unlimited plans with extra hotspot data have boosted AT&T’s wireless subscriber growth in recent quarters.
AT&T has unveiled plans to achieve over $18 billion in free cash flow by 2027, supported by its fibre and 5G network expansions across the US. Shares rose over 4%, reaching their highest level since May 2021, as the company detailed its growth strategy at an investor presentation.
The wireless giant plans to double fibre internet coverage while improving 5G connectivity. It aims to create bundled packages combining high-speed fibre data and wireless phone services to attract more customers. Current fibre coverage of 28.3 million locations is expected to exceed 50 million by 2029.
Customer demand has been bolstered by AT&T’s unlimited plans, which feature added benefits like extra hotspot data. Over the next three years, the company intends to return $40 billion to shareholders through dividends and share buybacks while maintaining annual capital investments of $22 billion.
The company raised its 2024 adjusted earnings per share forecast to between $2.20 and $2.25, slightly above analyst expectations. It also plans to exit its legacy copper network operations by 2029 and recently reported $16.77 billion in free cash flow for 2023.
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