- AT&T plans to reach 50 million fibre locations by 2029.
- The company expects strong financial results, including $2.8 billion in Q1.
What happened: Expansion and financial forecast
AT&T has unveiled its bold plan to extend its fibre network to over 50 million locations by 2029, marking a major step in enhancing its broadband infrastructure. The telecommunications giant has also committed to adding 15 million fibre locations on its own and another 5 million through joint ventures. This ambitious expansion strategy will position AT&T as a key player in the growing fibre market, aimed at providing high-speed internet across a vast portion of the United States.
In addition to the fibre expansion, AT&T has set an optimistic financial projection for the upcoming period. The company expects free cash flow of at least $16 billion in 2024, with the first quarter expected to generate $2.8 billion or more. It is also forecasting earnings per share of $0.48 or higher for Q1, which aligns with the results from the previous year.
Despite facing a competitive market, AT&T is strengthening its financial position by securing over $2 billion from recent transactions, primarily used to reduce its debt. Furthermore, AT&T CFO, Pascal Desroches, noted that the company expects to generate an additional $50 billion in financial capacity by 2027. A substantial portion of this growth will be allocated to dividend payments and stock buybacks.
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Why it’s important
The expansion of AT&T’s fibre network is crucial as it seeks to compete with rivals in the high-speed broadband sector. With increasing demand for faster internet, especially for remote work and digital services, extending fibre to 50 million locations by 2029 would allow AT&T to meet market needs and expand its customer base. Furthermore, the company’s projections for financial growth indicate that its fibre investments are expected to significantly boost its revenue and market share in the coming years.
Additionally, the planned allocation of over $20 billion towards dividends and stock buybacks underscores AT&T’s commitment to rewarding its investors while enhancing its financial stability. The projected increase in EBITDA by at least 3% annually over the next three years is also an indicator of AT&T’s growth potential. The shift in focus from wireless spending to fibre deployment will help diversify the company’s revenue streams, ensuring long-term sustainability.
