AT&T (T) 22 Apr 212021 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the AT&T’s First Quarter 2021 Earnings Call. At this time all participants are in a listen-only mode. [Operator Instructions] Following the presentation, the call will be open for questions. [Operator Instructions] And as a reminder, this conference is being recorded. to Senior conference Investor Vice like host, to Relations. now Rozwadowski, Amir President, would turn over the your I Finance and Please go ahead.

quarter good to Head and everyone. Investor call. first of AT&T. you, Rozwadowski, I’m for Thank Relations Amir morning, our Welcome

today call Officer. and Financial John Stankey, the Pascal on our our Desroches, me are Joining Chief CEO;

today harbor says that some Before we call to It need forward-looking. your attention our statement. comments may begin, I to be our safe of

AT&T’s to risks Results and As SEC such, in filings. differ described they’re materially. subject may uncertainties

Additional as information I’ll John are website. available website. is to on the that, always, on Relations Investor With turn And over John? materials the call our earnings Stankey. our

It’s about morning Amir, since good Thanks, Day. six been and our everyone. weeks Investor Analyst and

cover today you. we’ll familiar what to be for will framework the So

a relationships approach our households areas most focus way deliberate to our business. customer have to across our capital market consistent, areas clear grow the with From to and to run we our focus allocation market plans. these U.S. XXXX priority We

see you and our execution quarterly in results, sharp momentum. have we has been our As

our to customer with growth in strong grow mobility, HBO AT&T continue We Max. subscriber Fiber and relationships

to capital content. in invest continue spending in and also We both

allowed and Our deliver in invest costs our out flows has ability to growth. of us strong drive business to cash strategic

can optimizing also across about returns. while This generate on you we’re investing future intentional that dollars our portfolio. wisely. returns the business our as see However, results, strategic and supports from allocating We’ve been in deliberate the of opportunities the

was business significant consolidation The in Same at cost and and simultaneously sales studio of Max. mobility down For operations, in EBITDA our example, growth. driving to year-over-year networks, invested restructuring force our transformation drive yield profits improved where with HBO customer WarnerMedia savings increased even technology. slightly, we is in efforts investment cost WarnerMedia while

capital more freeing in Our ahead of are areas efficiencies to is there across us. opportunity up transformation the Company and and driving growth invest initiatives our

allowed levels, plan our is sustain dividend us to invest allocation at deliberate current believe we which Our capital and attractive.

debt. reduce We’re prioritizing to after cash dividends

assets business the monetize refine with assets. of you controlling other continue our overall video we do and in sale our saw a announced DirecTV as We interest our quarter to in as non-core focus, us

progress Slide the focus on at delivering our look market made areas we in X. Let’s on

growth our customer across HBO in we was Max growing profitability. we’re a more phones and on right impressive it best years. and way first Our add the added fiber mobility, net quarter postpaid the than nearly focus quarter, mobility, in In X,XXX doing with ten

and net up we’re Gross promotional and significantly spend are a lower average year Our subscriber share. taking is ago. adds strong our per momentum add is than

X% program increased than to quarter unimpacted. At compare transformation where is service largely enabling more we’re simplified Mobility the benefiting strategy EBITDA and despite channels. revenues XXXX XXX same was roaming from competitive. up optimize be points basis sales Our a distribution and were us time, margins a go-to-market and first

on for premium are of a HBO continues we’ve fiber subscribers June. the It’s grew broadband globally team the launch strong million product pace last X HBO another subscription In added and WarnerMedia’s than other first You quarter about it HBO quarters. the the AVOD revenues premium subscribers introduce strong internationally in an ARPU we’re in locations Fiber our offer to to year. slate. a added all grew and in million success months. this areas. our specifics to content our in domestic and XX the XX% Max to strengthening by believe by Max and and turn were to million to the business with fueled AT&T how compared momentum yours. that, this streaming Across consumer I the nearly theatrical steadily the levels is track direct-to-consumer executing of net and to it gains the U.S., our quarter in on day-and-date against adds last floor business, market expand. Pascal, together, fiber XX out focus HBO we’re customer Max With more our than platforms IP We’ve the continue formula singular subscriber Pascal encouraged and customer demonstrates I’ll post-COVID is our X% discuss priority we’re and quarter, revenues over put works. and results. welcome, to board, penetration and build deliver management first relationships to in and grow X more four strategy,

good and John, you, morning everyone. Thank

results Let’s gains revenues, our FX. with in a earnings more Revenues WarnerMedia video, started and were and legacy declines flows. and cash growing X. the from We Slide year offsetting ago mobility on consolidated services with begin than year from with up

our a our to As reminder, business. Communications been has recast segment exclude video

EBITDA EPS for essentially quarter, the marked than Communications flat with That quarter. fourth more Adjusted was up that’s was quarter X% For the year. the $X.XX, improvement from demonstrates the year-over-year. prior a

a had with to flows. of good at Free sales operations lower and CapEx receivables, the billion was in Cash for our with also We cash cash higher the interest. $X.X quarter. start flow came year from $X.X billion

dividend Our gross XX%. CapEx payout $X was capital was was investment $X.X about ratio billion, billion.

billion, this year. investment $X.X total business cash WarnerMedia’s all In content quarter higher across slightly last was addition, than their

in billion further our indicated seeing are up our we’re investing edged Day, our areas of market the to we investment validation and gross for focus year. the capital expectations at results. As quarter first we $XX we the range Therefore, strategy our Analyst in

Additionally, we increased favorable our financing ability expected payments given our vendor terms. negotiate to

growing us business continued that EBITDA expanding EBITDA quarter. segment our to starting the business. We our with in in Communications with segment our at way lead this saw growth X. on customer service margin growing roaming service our revenues, postpaid strong in Slide high phone with estimate look that’s $XXX base, facing and continues Mobility now margin results million Communications our Let’s cost about we international EBITDA operating headwinds

mobility mentioned, for direct of part churn Our levels. low customers. to continues share record phone resonate postpaid stayed postpaid gross to mobility. near and with is the increasing continue offers simple has story be as big transformation phone a adds And Cost our John

more efficient, operations streamlined down costs. sales and Our are processes driving

our average a significantly per ago. net year fact, lower promotional adds than In spend is

Our expand has But customers business transition. EBITDA. simplification product are the solid cost EBITDA margins in also efforts is been resulting higher management Wireline have cost the products. Cost away helped another legacy in as wireline. and evident to from transition key Consumer business delivering margin services and savings

are to year-over-year. We quarter. the Fiber and grew our our footprint why We customers XXX,XXX broadband ARPU show X.X% added in you fiber AT&T quickly results crucial. that is expand moving IP

more growing, total and adds net and also rate penetration increased. is than broadband fiber XX% Our

We of the growth. year-over-year this trough be expect to in terms EBITDA

in trends to the by digits year. expect IP revenue mid-single broadband driven here, We growth for the improve from

now Kong business. Direct-to-consumer customer higher We HBO of Advertising than XX.X content and to subscription more transformational direct-to-consumer associated will success Max. advertising box the on Championship also revenues Basketball the move costs especially XX%, Max of we who box last the Let’s HBO combine year of the been connectivity which with revenues platform. it by great about now at more higher such or subscription on in for nearly was been other environment. since with NCAA with catalyst XX% is be while up on have were of a customers are new HBO drove sports, Max because were first enjoy Tournament. EBITDA for as return and subscriber XX%, this on had X. of show any largest down viewing Godzilla Slide on sports expect WarnerMedia of day Men’s movie reflecting And driven vs. WarnerMedia, staying at grew office XX a a Max and acquisition subscribers. million monthly Average the customers provided largest results million pandemic year, have and little revenues customer the both a and or domestic office up Max one The with even slightly. release any Godzilla $XX. of HBO just film success. Max bears And steady than revenue having theaters and in Max and the are the also on vs. and a domestic content is HBO per less we HBO they subscribers nearly costs The or out. what a worldwide HBO of It million HBO has flow other content other movies retail higher chapter HBO Max. Revenues the same growth the in domestic Kong audience products XX only films success It attract has challenged has theaters launch. And who growth HBO.

attractive have into planned products of lean later XX We’re plan really Max end the launch and our our to the looking We reaching of AVOD AVOD expect points to international we forward offering in introduction international the by HBO for our June. year. for and price additional markets to

Our to X talked our adjusted made We we X.X aim net Now attract $XX on to debt C-Band offering an use premium spectrum differentiated payment to Slide and That global EBITDA ratio for liquidity. content go capital let’s to since drove to to our our customers March. allocation is update billion you last times. in

level. expect our this We will leverage peak be

debt monetization. on debt focus year-end strong We’re We’ll flows reduction. and track of in a reduction have to cash free still to asset a from through combination on sizable by proceeds continue

three around by net We to times EBITDA be year-end. to expect debt our adjusted

also to other monetization continue opportunities. We actively asset evaluate

Our treasury of also to lower tirelessly team our has cost debt. been working

the down cost million of costs in in XX basis about first lower weighted driving year-over-year, is quarter. interest average $XXX debt Our points

average years at Our our About XX% weighted a XX at weighted cost maturity for rate. average fixed is debt of debt a is of X.X%.

an presentation. environment. we’re our feel in we that’s rate So increasing Amir, interest protected well

the Q&A. ready now We’re for

to take Operator, first you, question. Thank ready Pascal. we’re the

Instructions] comes Please from the ahead. Hodulik [Operator UBS. go you. line of Thank John from first Your question

Great. Thanks. on guys. questions Good two side. WarnerMedia morning the Maybe

HBO the total subs later and million and obviously momentum. Max XX and some got this coming You've launches year international AVOD

quarter, EBITDA of come the in then to the flat? down? more you expect does can that for HBO Can through that Max. mean, So Pascal, us up? And mean, you but to it's get driven And first year in XX ramps? is essentially the I end, the we do we some a I drivers to And if as year quarter for need content of than million investment color guide drivers, that on in all decline not, maybe Thanks. the by EBITDA trend XX give is investment mentioned more some the double-digit kept you we that that expected million certainly thought even some expect slow a WarnerMedia this the despite why

for mind. couple to Thank question, things your of John. keep in A you

what to guide, how but update we're really is obviously, to And Investor our beyond responding. said First, guides with at are we're provided as going it performing, the think what we're a And we good this really performance. pleased pleased time Day. but we business guide seeing our on relates not our the with consumers I out we've you're product already, is really are putting and

terms a there has across overall, mentioned We've over In is of the thing several the WarnerMedia costs last course years, taking transformation a to several of out but times, focus duplicate here on. this been effort organization. consistent

So we combined function, technology studios. content sales have organization, production a

the So offsetting that That the is through. and is that's that was all it's that HBO was Max. in our are – objective coming what we plan, through what that we making was coming deliberate you're seeing and investment

we I to that – going have to subsidize of on savings should some forward, making. the we're what going of but help again, you terms investment trends the are should not transformation significant going be, exact keep comment In am

Pascal. Thanks, it. Got

question. can we the to go Operator, next

Your – on hold question one the line comes next from second.

can then. to that, get next move the Operator, question to we

of Please from comes go the line question ahead. next America. David Bank Barden of Your from

in Maybe had against if deploying passing year, the of could. were factor about Analyst as million that the guess expectations? so Thanks kind to that the into the second the this the team And talk changes at fiber as ground prospect a rate plan? accelerating question recent two, much. how the investment game on guys. talked what your I many success they based opportunity you Hi, the potentially X presented fiber next with the Pascal. then of relative you're about business John, seeing you And year. million for little I Day you bit the X Could on that price in

quarter? like from the boosting advantage operating to guidance your a the Thanks. CapEx you by of flow same effectively that little plan on of you lowered kept with this a vendor flow implying ago. performance your looks Could strong bit but You take elaborate financing, free change what cash lower relatively how kind in we guidance quarter the cash square guidance

Dave, to over let then I'll with me start the CapEx turn question it John.

Here mind. to is context the in keep

was flow know, as watermark performance And free strong. cash quarter you really for is this typically low first the Our delivery.

rest really performing pleased we're so, with the the is business momentum, And and assured. customer how

wanted it but we this this not time looked change are appropriate capital projections We of should comfortable but into made guides. a to has it we it CapEx. we've our any to spend, read given was appropriate changed You in start for our free it any increase it, we thought at guidance as we is. more to didn't have really with flow some to maintain than cash that we think result was at and however it not way the to change When flexibility, is,

than it to that. more nothing really there's So

Pascal what just you said. of Dave kind finer tell maybe I'd put on a point to

in management team we right and things way, in want a things And things we a the bit want I of the do to cultural a way. is One probably shift. trying have of to to impress sustainable do upon little the with I'm

run latitude team and the a very and focused a they to a for the or to returns. the trying them we limit organization we and will business, at in the that is get something process-driven to the years. next want a literal a are right have long about you number I with some great you point that's ask do how the that the haul effectively them the hard maybe to We minimis on if I bit de that people very strength, do really don't with means while very help thing understand And – raise flexibility, but that says, there what that lot could or number little a consistency doing more for that have and gave looking efficiently diminishing sometimes returns that's management delivering do, of two I'm saying, we me

see into how up that, to deploying, be in the what ensuring need come with got about when compelling and them back should we're the of making the is comfortable scaling, build, I terms market deployment, seeing Xg number we think we're in that position. the a That's fiber market reasons or to and folks the et green – build I we to I'm lights. to run so And to asked an given the I incremental team around from we're it's do that important perspective and And roll the ways the latitude of that know me. the that. base important it's latitude of perspective And our what even to I operational about know including supporting run. to I that I on question in them. cetera and I'm about fiber days, we what they one our why as what won't sure about I things And responsive days really all what what give I it they our deployment go have really and of have And work the early like underway way I to doing early letting in there you on starting think is letting call get that we say in of

area. actual move the get share they're and this start not satisfaction scores going you like up is deploy things on customer market once fast we're that, at look told rapidly just promoting you at lives, get customer as a And we're transitioned and when an performance I've to net never you we've And I've the promoter movement product movement and as great. frankly all position in levels be product, the there share customer seen And churn, before, seen goodness. If I seeing. of to like we satisfaction to have as to typical products able as as looking

our to engagement And to those benefit about you EBITDA churn actually to levels both life see the of we And content, bottom get driving heard of as where compare. kind of Pascal want in think down. remarks, in That's talk well. start going attaching customer opening to start driven good I EBITDA terms It's been that driving customer higher. of a at lives really is driving we of and as going of that, to them. you're the the over by think creep lot A strategy the up It's things really broadband. the being up. bode start back We're we start satisfaction cycle. – our to that lap we're our to dynamics those

across good board. I really feel So the

Thanks very next move much David. question. the can, we Operator if to

comes Please of line Simon go question ahead. the Stanley. next Morgan from Flannery Your from

Thank called talk little that you timing on? billion Thanks. rolled spectrum? today? mentioned plans your that CNBC you to you updates I there the just around markets can can And get do you you. out? C-band what's billion So the X.XX, you bit When going doing think Good initial the on about morning. extra expand great. of to And part X are you're dollars the perhaps be billion out? on in any a interest John, Is around What that. is the X for the marketplace would in is the expect the

of we – without gave up markets we where things in deployment, the that of are rate guide and pace will aspect one even turning which Simon, coverage things aspect. mean There of you the it's today that make this are any dynamic and playing of the now So haven't several. are some doesn't we help late on at variety of a but doing described, of year. that that it. C-band That's decisions not changing some into POPs begin we an Analyst the wouldn't is on changed XXXX And we Day, That build that within we're capital that the the that deployment. can this

certain go parts amount things the doing touching going aren't same, and things and that a That, to may efficiently be some touch be do aggregate until the them maybe time. we example, in we to towers And things, we service in second is so and as for there we're could is infrastructure. later little not time more things pre-provision the in that a can do of but XXXX today back

through. that drive dynamic ordering So, a to trying some of that is we're

I've As that guidance and deployment be from five is we see right into going any our told now plans change bit I growth as to deeper. you, on don't get ago. we a little expect the you there We'll gave that the weeks this

we where possible stuff put start we up everybody chain anything want a or new, are across that. As a relatively commitments. is that be momentum as And it in comfortable cautious things the shortages bit work on that supply on the asked now usual, until that around to certain will cycle see and you are you skittish. is question that technology supply waiting do We're little stressed in units. bit but I could to up are Global the a the I'm is right vendors dynamics popping we're seeing racing crop we're occurring and up I little guiding give in to where around have chains mean, that's little May. specific answers, And And doing element you unexpected global why people get different board. up. towers

for in see said end opportunity the auction, at as watch our the valuations, are over We've expectation we our carefully. on we valuations that to the in that make In it business. that will can and we DoD we've comes I to any you that next EBITDA spectrum we portfolio. we an of down could forward always some have provided projected for guidance for several terms X.X are make look will things if be does years And We're in year there going XXXX. we the the guide an sense believe in be or it level tell you of auction that participated it in debt there. I to looked X.XX spectrum sound sense plugged markets where that you

to valuations way expect I down looking done portfolio could be it so fit into we to plan, make and that and if of And that going to the believe sense? the And be saying and we're us is does the do our it we spectrum think network within going we road do it's the some auction be like at and helpful done.

Great, thank you.

can we question. Thank the you, Operator, move next Simon. to

question of the next Your line from go Michael from Please Citi. Rollins ahead. comes

if Thanks could. and I good Two morning. questions,

promotional on customer engagement if initial after just customers if curious the the also share more context any change better or onto how using recent competitors. postpaid to if activate you're reason to you're wireless improvement platform in from verticals understanding expectations then the changes First the secondly, a service just seeing your of that or I'm HBO purchase could your seeing the on you some provide levels contributing the on are you details the impact are could some the and growth Max Thanks. curious platform customer application. of And or to growth to that gain growth the the subscriber

me you than more at to what Analyst on week into every give not hours engagement you those of get numbers. update of give don't we five let kind to you want Mike, any the on gave Day. guide of – going publicly kind we're I So,

dramatically different the that are any our service. than SVOD we'll hours don't you see and per day we're product we think certainly would what we is launched two sense what's when per higher think up I it And good than you goodness. satisfaction to a other I think well of and place really that's really what take of expectations The that good over on be, behaviors our gave I doing account. a are probably customers happening and engineered

because carrying a that come to engineering have kind As of done of executing remarkable in customer Pascal we opportunity data job, out it's them and exactly reason it, for They've as the not that a slate are clearly to we many good team. through, it of we to said through that the we versus in some to we've more you got SVOD. to do theatrical revenues of early is on wanted the and of theater. year between When you. data it Godzilla see see terms mix, what for of in SVOD we're and get growth strategy out come Kong customer But in the coming the when on theatrical the only mentioned, opting playing at the look laid movies back and like in to credit and you balance versus seeing

you is feel customer any can was pandemic that do They tide with all pretty think in with in boats compelling And that. drives I see other case. all there we the lifting our high probably the and for they once rising the And in, a they exploration call this the it that moment they we to SVOD comfortable value were do really product. of series. come about And service. what go right

two, originals, they high that the HBO library. the and I out content Max there one the deeper around. is demographic weeks, three library, depending they that know and series engage dig for those next sustain the good guess that And marketing month is HBO to see have say, ones because into they that there, we it we're scripted another want They job on else the go workhorses movies, evidence individual what coming seeing in the and And is tends to the well, them I So originals, to there profile do. any gosh, I'm I new of what slate the they then around. for sticking I'm of into of now think on of the start

what consistent we And so been moving expectations expected have churn in. our with

heavily always that's it's SVOD core the in been service, theatrical one And the how maybe suits. any just use the theatrical more of strong has our offered and little we're HBO product. a with the content, services strength of And bit slate that so, think, and we're to than approach might classic strengths I our using we're HBO and managing other because it although to playing the tiering

business to that has we're maybe that their seeing share and attractive if sell to. the we've in that that like affinity there's On on of strength the want but a waterfront a this really vertical. indexed of record, we're somebody they our part not our coworkers, opened but an drag were the to some and lot and being to on using been can And before, really And business able responder affinity share, their the strength among side, and characteristic our business particular, FirstNet, up enterprise don't It's we we've ensure into we wireless pricing and that I vertical family through families of a of sound only their I've at part particularly that that said come customers that occurs to distribution that those approach. within in areas strong that incentives to plans chooses managed first sales for segments, strategy. growth. for but is under experience our business purpose of in selling work of and force cover home with attractive The again, verticals which an characteristic have in a affinity reach ensuring in broken not as only

with We continue to haven't we the traditional iOS strong part lost would which what of tends be on And our call our centric market. to edge the any postpaid scale verticals base, there. better I customer

bit fact, have And stronger. we've think to done I a we still I room run. would In you, tell little

product start if and a our looking areas. in the the is probably bit community Hispanic our verticals, that we at we do a those especially and couple under-indexed of we're think team little position on brand focusing better we can I in how and

our doing is now right view of point my better. So, is We're momentum continuing.

with we market to As We've a you play results, of repetitive can still the been consistent after and quarter. very have in to from try a see quarter sustain that. offer couple the cards

correct. You're

we're our really They're have us continue that's to going to try mixing be very seem and game. very and We good a to aggressively. place We their seen stable, and compete for competitors changing our to be, to play consistent and pretty to continue frequently. offers

Thanks.

to move next can we question. Operator, the

Please Your comes Cusick line of J.P. Phil from next go Morgan. the from ahead. question

John, going less you EBITDA about see you of with churn, customers. that retention just have for how How idea Thanks. of up base. forward? new think upgraded lot year extended wireless, upgrade do for you the year-over-year? you investing in the the lower on phones And following outlook a Pascal, wireless much in an believe for you need may Can talked life give helped second us last I base. Do there few next quarters? You've the the is wireless

the Yes, consistent to given and remain exactly the right base tapers back to would where expect that It's into predict I after immediately holiday it of a launches. think volumes get up. it'll this expect get pattern. we we a with device and of get given we the as middle device and season, part Phil, through the We're guidance we're the second But at. have following the now. kick in going it's hard you the year into pattern a with bit that subscriber bubble you off And consistent on little really experiencing was launch. of that new the comfortable you we're much then ebbs said, it's I as new where you part fairly It year been pretty The the goes. is flows

very back, the comfortable EBITDA grow service As we'll continue profitability you, seeing We're bounce you're that segment. and going you're trajectory. we to told in see

the going over can dramatic that it. it's So what that way on dynamic you and customer we the I guide I'll right at. moving be there feel I really or get the one going is now about direction direction. to good don't suggest you're to other seeing any to our shift I'm think take growth

couple of not And John. we first saw in The just well gains keep to follow-on momentum, to is Phil in as as points, look mind revenue profitability mobility. gains the a thing we customer saw only

feel So it. really working the strategy good and about is we

this based of something here do net slightly customer basis. the Overall, As quarter the to change it was of we information context. on assets lives The effect your We is relates is to on we have. question negative lives, lives regular most recent on changing a earnings. this

For positive. wireless, it was

positive, DIRECTV Consumer assets, for was For was it negative. it Wireline, but

not it X-K. it was balance, disclosed significant on that negative stretch by our we've and any in and So, was

sense. Make

on of think direction rarefied taking, to you wireless of churn seven lies handles the little see an expect know, churn I post-paid extension bit it's air. you'd is taking a with

Yes, also are this vendor a what there are you I I of getting follow I year, paying on CapEx? just can incoming that? versus cash so think a years? Can you flow well. higher previous the you about in if Pascal, misunderstanding And what I'm up in deeper spending are is go two on that's for people agree. where as that question a lot something of Can and spoon-feed lot earlier. payments increased us you free of versus just back you mentioned about spending confidence higher minds.

pay historically to to CapEx don't will Phil, met flow. it's amounts that plus that you we much of we've But flow levels vendor-financing at metric the expect relate metric where the time that today. purchases relate we've businesses. to. year. is are from based to capital you a from – know, data as cash CapEx, we flow for people we provided That And should cash flow really our have as being Two, I Overall, invest for gross for to intend accomplish payments fully that it takeaway One, – in on the in-year cash free a through just our able be the we out there. called and of consider. good another there, CapEx measure that's we about sum we cash to don't have but necessarily feel to those vendors guides free to pay to we point tell got out prior free investment. trajectory continue non-GAAP your we that generate financing-related a the that of

guys. Thanks,

the next Operator, can if we question. move to

next Goldman of Please question comes from line Your Feldman the ahead. from Sachs. Brett go

on that can see service time product be think work bring you do HBO efficient market to you for Max? offer? how Can words, the as taking launching you partners existing AVOD be who with and think Yes. you that as will spend you market? Thanks AVOD was you question. hoping Thank I out And Or addressable new my you'll then reaching channels do reach leveraging need a you intend you the aren't those some think could who bit consumers? you're with the on do elaborate reach Do going have summer. you this to In for that currently other as we Max? you with to to your broaden service as with that you.

And particularly there so segment of warrants, think decisions that there a you give investment I'll right more the premium that of know, market are for HBO in-home entirely Max – market. of And when we while multiple like Look, to bit this product is that disclosed a the into we as me commercial reasons little coming and let out do to pricing, are launch, market reorder benefit a is demographics. color. in in good getting going base or the we're we their the and believe cetera. et high in and have that look would service they if a product enough when of some the got that's place look portfolio I that, cases result that up that and they price advertising, some maybe their as is the true people know well-executed three this down maybe say a we and everything I've may there make the to believe streaming well, at choice at premium where won't they within that be. services aggregate household And some they that apartment to younger is their it. And I to point are and be maximum think of we'll, the a you particularly get in and Brett, I what wish streaming course, entertainment making services before that there today, everything them – we charge you that interruption say, as the that in services be start to true for price-sensitive. people are And without haven't get to

will in dynamics. socioeconomic example Another be certain

think it, actually line for to can AVOD offers example, we a because So, how it our prepaid you well believe position tends dynamic. with places to opportunity channel marketing up opens awareness bit and where, more again, that ultimately a other are socioeconomic of we channel, on up an might And in the price-sensitive and product pairs we and drive some customers price-sensitive. more expect, penetration

will And to important day, price portfolio it to to you price the lower we lower services it And stick multiple as for and more an push service think you're segment that option you be to a going in household. to that of really the think ultimately smart a So, lower enamored really making And place. it. there I a point on the of period on and you're time, end flow be we where the market. place choice. demos allows down in a at as it the the offering reality ebb where it's customer get not a no somebody that maybe of content with that question direct-to-consumer when subscribe that that's of just the have to that's decisions at of Having new hit offering is with point if a you gets are people the in see make

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the next move can question. to Operator, if we

question from of Frank ahead. go the James. next comes Please Your Raymond line Louthan from

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much very Thanks John. It’s helpful.

the next we can, If Frank. to move question. Thanks,

the Barclays. of from question Kannan Please next Your line ahead. Venkateshwar go from comes

you. Thank

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Thanks for very question. one time much, Kannan. last have Operator, we

Okay. That question comes Please Cowen go line and ahead. Synesael Company. from the from of Colby

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of but a to previous so of understanding just in frequently. more your wanting of having if Thank financial your want change question, habit it's that anticipating a I the will, in about downturn, I'm less think terms that I guys you in to the to function guidance not that make correctly. response type be results, any of is you sure you.

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over much for questions. very wrap you you comments. Thank turn to for it John, any the

where that those that products growing lines, have long understand of Well, the in right they're is opportunity all feel first, sadly, uncertainty us. for And a front strong of in together I Pascal, way thank customers trying that that. franchise. what are product. to look more business course forward today. the focus no you, confidence that, part to would so lot you first where we degree you of on look of growing wanted fundamentals We you out really job fixed optimistic finally, team broadband right with second with being business adjust we were and you you consider building wireless way underneath see the done the across the entertainment-based of of those the year, but the a you do we've see highly high-value with these And how have of going the good that done it's where was a continue with we're here. subscribers in told and the you plow if tailwinds We think out. have all seen submit continue really getting exactly fiber then, I there we what to are with get you satisfying citizens don't sure march we over if longer tell would this that quarter many first of But and and conservative -- could hopeful momentum you board But numbers, guide And the I'm service I'm of a a you. us and business COVID. up, to irrespective the satisfied, terms a of vaccinated, success And, right told to connections I that you're a clawback numbers think things is year. for through has grew to to coming know And carrying the still about that we in that from year this success we their guide. make really in now. I coming growing year And this last we're remarkable have it's to. you sure and sticky seeing can are But we we and going these last our and wanted continue, forward-leaning are of and that quarter focus strong I the forward. good we and what we and about underneath to our this in gaining being in

I look days your forward to talking now. soon. see you and ride that in XX attention. Thanks continue see from You We'll quarter. to you for that, the to to We're going

today. conclude Ladies and participation conference for for Teleconference. that and for using AT&T does Thank gentlemen, you your your

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