AT&T (T) 22 Jul 212021 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to AT&T's Second 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. turn Senior call Investor Vice to host, to Relations. like Rozwadowski, Amir President, would the over conference your I Finance and Please go ahead.

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

WarnerMedia. today call our Kilar, joining and Jeff Also John Stankey, for McElfresh, call Communications are the Jason Q&A the the Pas on our for our of Desroches, Group; me and CEO are Joining our CEO CFO. us CEO; portion of

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

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

are remind Investor for also on is Additional on Web you information Web materials the Relations want Spectrum are FCC site. period that I quiet And in the as we to site. XXX. available auction our the always, earnings our

your I'll over that we about today. can't unfortunately that, John answer to With So, call questions Stankey. the turn John?

and everyone, with should It's our guess risk planned based being success your thanks being morning, priorities. familiar what today quarters want you. four evaluating Good articulated we be strategy since simplified in the to take, how I to three depending on I cover repetitive consistent, framework been us. of a on on for or At the for we forward going

grow and to through focus our relationships wanted subscriber HBO Max. Fiber, we of First, three XG, market areas

years. in increased restore of areas. our strategy and improve so we products position some improving growth, for difficult and and narrow our resources the set we operating to investment our increased better customers. we is that And in in sheet. Second, could to for To up to will success effort do so, focus balance made to our returns, best-in-class we focus, the capital profitable through these by our this allocation committed our execution support drive be to decisions competitive the initiated achieve growth. an that businesses By third, these And doing and near-term coming long-term support success deliberate to efficient we priorities, to defined experiences flexibility believe investment returns transform everything we business effective allocate

record million progress initial solid We're locations. our operations from Let's to and similarly by was consumer domestic our just in business HBO our of in fulfillment look channels. which at we've streamlining three a what HBO produced than phone notable business billion digital we'll our net past more $X made that just Max subscribers year-end, our we we've In made also transformed our we're run our fiber, of a a on combination gaining decade. and launch, And an posted over million four. have of one on responded that grown in not attractive into fiber rate HBO footprint $X months We've We've billion and expanded prices, areas. million. have quarter. that effectively customer have and quarterly more We And premium EBITDA. wireless growth XX.X service best share, transformation business this XX% reinvested our nearly churn, the base By $X year in to each we've core lowering cost achieved the wireless, at growing at grew subscribers. grown efforts, customers slide progress In than by savings by growing XX priorities. year we've had adds billion and a postpaid after

dropped Churn number one continue customers too. and customer in to scores have levels NPS rate have improved substantially significantly, Our satisfaction. our us fiber

fiber series on record introduced year, And announced the Suicide as gross matched I'm first-half is we adds seeing hit to had In last second of Our At quarter expectations Mare XXX stronger nominations, HBO in the as we In And total, Love on New our ever. deal in of And churn proud we Raised execution, the Your of the Squad, X. ahead Max new of the low. close network announced Also, since we weeks, record second churn we're with a with Easttown executing. nominations. pleased and the popular management A That's movies few Hacks. and even of operational transaction. such as with the WarnerMedia, such we'll Life. content. or exceed next than TPG Emmys that broadband, way phone the the year lowest deliver received more our DIRECTV might new quarter most team's Curb what highest good the such Jam: continue indications we postpaid we're Succession, team ability great top Dune, series of by platform. seasons Wolves, the lineup platform of Enthusiasm, WarnerMedia day-and-date speaking of our Legacy, back-half in and and of and the really to the on have XXX the expected. led and field week, Space Matrix with When HBO were any the is

strong the which a strong success at expands spectrum, with including right the content. more these And at for and fiber, for velocity the to of We intention months levels, XG is the continue XX with invest to WarnerMedia we last the going wireless, exit Our want opportunities same. billion point combination premium only both partner respective businesses, $XX in than forward. in hit

returns AT&T to to right dividend. capital value the optimize were right with our each supporting they going latter positioned our Finally, deliver and balance creation closed long-term we three in or major assets, decisions easy. of and DIRECTV, best to of an the rethink to the returns team, we sheet Communications, leading structure, the The These the in to how announced flexibility. non-core attractive the dispositions, WarnerMedia, businesses, a right to the us compelled path of to management And case number material some drive creation two, partners forward. asset right not shareholders, value cases, us time, balance same our

couldn't from the the momentum As turn way confidence over. pleased we're discuss And our We quarter strategy only focus the details execution in is more it far success. put the our Pascal supporting we we're progress our business outlook keep for be capital forward. quarter. for right know second but strategy updating real, results making. view our Today, areas is the that structure to strategic consolidated longer-term the is of of work and win our in have our the investors' XXXX demonstrate, that consistent I'll to place our business, I to in with over and we Pascal?

Mobility, The add to and Fiber, with momentum take HBO Thank the year the our significantly to thanks XXX,XXX same. adds remains In and continue is per you, lower the be consistency morning, Max. growth years. phone, impressive than continues average low strong, much John, good story postpaid spend saw up, than Fiber are XX added churn that's share. we a nearly more gross best and Subscriber quarter, and offerings. we net our everyone. is promotional our record second at The levels, in ago second We quarter across in to

Having X%. see of with exceed to broadband HBO our customers And continues the expectation. subscriber to to surpassed solid new more most Max those revenues AT&T. growth, We than continue grew plan, by ahead six expectations global lower XX XX end subscribers year. million now raising of target our are months subscriber of end of million to the our to we global the

us offering our domestic of of Max, expands. addressable international our in XX for as up growth as well market HBO launched That customer also at sets the as end quarter. additional version ad-supported Latin-American territories We our the

seven, saw our brunt the QX our financial results. impact on consolidated pandemic's Let's Last now turn year, to slide we of for the results.

some to quarter. declines areas. Wireline more quarter. the last in We'll mostly our our having business pandemic we're timing video to year but legacy moment, reverse businesses before, billion that in emerge that were with or Revenues talk of than from EBITDA than sports itself about services. our and expect more in $X declined Adjusted results, in most growth WarnerMedia, more impact than Consumer second year's and While we offset costs up due a seeing pandemic-impacted next is X.X% market-focused ago, gains still a with accelerating in Mobility, stronger on

$X.X to was gains of billion came cash announced the investment. $X pretax %X.XX, quarter expect billion In on continue sales in to our next modestly year-over-year. from EBITDA than $XXX that's $X.X cash Adjusted included quarter plan the of to Adjustments WarnerMedia was Cash resilient. pretax billion transaction for yesterday. in we Cash fact, mark-to-market for with assets the flat based quarter, investments. non-cash million billion even at This a be $XX.X up flow up a X% principally about and consolidated from Free benefit on Vrio be the flows operations for more improving EPS thereafter. content quarter. increase includes gains write-down

payout dividend interest accounting was C-band spectrum band activities. ratio impacted purchases quarter million are capitalization flows treatment about about XX%. stops once recorded as this of were recent deployed. of fee Cash the with also investing associated spectrum by our is Our $XXX the which This

on results, slide operating at business, our starting our look Communication eight. now Let's with segment

Our quarter. Communications accelerate, grew to Consumer Mobility we terrific revenues Wireline. gains segment delivered and driven in another Mobility continues by and growth

record growing up more phone we and low, base. X%. resonate Revenues continue in service have postpaid customer continue a were offers simple with Our strong to phone growth, with phone matched postpaid customers. revenues our XX%, especially Postpaid to churn than

quarter by a net gains revenues, up QX without tower more customer highest difficult EBITDA capacitor $XXX included year's nearly last growth a a EBITDA that on million, $XXX return in phone of sales. And year-over-year. million than improved record. This international our postpaid roaming is came on adds and material Our million

Also about the XXXX. the timing year's we sequential impacted deliver recent in We a transition service to EBITDA the even by margins. to margins boost Business wireless and fourth a the quarter services year wireline handset our pandemic customers benefits expecting the from think related to improvement cycle quarter. both a to agreement we in third products. with margin EBITDA are keep As the comparisons legacy and year, solid quarter you and of provide on EBITDA in introduction in higher launch. consistent expect dish away were Year-over-year as continues normal versus front, revenues balance mind, last ago saw

third We the expect quarter. similar comps challenging in

cost wireline the and business rationalization for continued the year. very in comfortable maintaining product with remainder margins XX% of we're management, the with high However,

X.X% to fiber Broadband customers fiber added by XXX,XXX ARPU grew quarter. in be Our the We growth continues year-over-year. solid.

X.X%. nearly point major revenue drive Broadband legacy Our growth in than We've from our net a more reached customers. And help aggregate wireline XX% surpasses about Fiber ads broadband is year ago. of AT&T XX% business. inflection are wireline penetration new This revenues now rate a now consumer up XX% declines. consumer up

outpace to make second-half are also continue to improving our year. through continue revenues way to legacy decline. as broadband we the EBITDA expect We trends expected the of

and good pandemic. WarnerMedia's subscription grew revenues. which love Max. the really the coming Let's Direct-to-consumer revenues WarnerMedia that execution We were of HBO slide sports, and accelerated. been revenues and advertising feel move so Subscription, success content to really revenues about Customers driven and on of EBITDA XX% results had have sports and have revenues theatrical Max, The Advertising out our the XX%, a nine. advertising ad had our is XX% offerings HBO exceeding the were a growth Content launch of reflecting recovery quarter. supported expectations. nearly big subscription, more quarter. and subscriber HBO in both thanks upfront strong. and return were of production reflecting other releases. up the negotiations higher Revenues by international successful of to up in impact than an And nearly on we far TV late XX% up Max and advertising revenues content

sports fact, in sports of billion than and $XXX incurred quarter. $X.X we million more the costs contributed of In revenues, advertising

domestic due losses So the itself and the domestic a of year the And We quarter million of HBO XX to $XXX and is increased than have in from suspension worldwide little than NBA quarter year's season. now the that third HBO sports XX restart included sports expect subscribers. quarter, second ARPU million Max $XX. just more to as less reverse third we than in year-over-year most more million subscribers discrete prior last the of

the given their enthusiastic quarter initial much Our the ad supported of in we're prospects have international too an quarter but impact offerings were late second to receptivity. the about results, on launched

expectations As We're good in Latin mentioned growth seeing momentum, subscriber for our earlier, our the are markets. we especially year. American raising

early remainder XXXX. Max in the year. revised our subscribers to for growth subscriber until push launch markets our in ARPU the of most into expect region. back year We be guides This for Max lower factored some European Latin the fast lean in America, that our To into of subscriber shift start may we HBO from HBO is

guidance. the shift let's Now,

John for year. we the As updated our consolidated guidance mentioned,

XX. that discuss on Let's slide

for the usual full-year initial our reminder, a X% seeing As to we DirecTV. a XXXX from our momentum range the and is as a X% the contribution revenue across we're consolidated now includes expect business guidance basis guidance. on operations, growth X% Based on up from in

transaction close wireless the and projected the now for we investment on the to to of about year. Also, DirecTV also growth Adjusted cash in of flows We single we the early expect that's $XX have expect the close increase mid in expected billion we of billion X%. range, remain the stable August. in revenue for clarity service now expectations in $XX year, XXXX. with is from the better expect up earlier now low transaction, about free up from our X% Growth capital guidance EPS digit range, to

from we to Here's billion. the to impact a to expected billion. lower DirecTV lower billion guidance Revenues to for the also cash full-year. on out. lowered just is $X financial of be by excluding flow the be $XX about Free months by by equating billion, are laid a five EBITDA be expected consolidated expected expected is

historical adjusted We allocated expected were vary same. is are upon by the our we distribution providing press close is impact our no complex. included dividend we fixed deal, remain actual EPS our the to Capital investment financial we as DirecTV. we the DirecTV largely structure on modeling that's Shortly and expected performance, expect Amir, could is to depending financial close that That previously terms ready presentation. DirecTV's the forward. Q&A. plan your certain offset help treatment updated details release. costs the incremental other the forma guidance of to change recognize related cash considerations also be from the transaction Sunday Obviously, actual the why after pro now some and date NFL benefits the ticket to We're in to for going accounting financials to guidance on

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

Hodulik our the of question Of comes line from course. UBS. go today ahead. first Please with And John

XXX Mobility, and put quickly and it to, us would details if Anything by some you how And morning, could lit of deal maybe details be revenues affect up thanks. great, of do AT&T know some you wholesale just spectrum in you specifically could announcement, maybe spectrum you have as on that us could of see you also, on part guys. used it from the could Okay, thoughts, on of tell Dish, the you that start that? you Good that access utilize any 'XX, be what your you'd with sense could do that it give to could into I great. the to about Pascal, that details us Dish, just take about then expect guys but would megahertz guys a that Thanks. should when give all is or -- the some to traffic there and network be is if mentioned over sort migrate timeframe

John. Sure,

the in are that would it's start various I the that good and company our from just tracking cognizant of and one first, wholesale say And since been of strike and watched manage company, to of a the we've say, the how in a been long of let the we've working business. to business always fixed try right always out some have with comments as we moving and very this last balance. experience wholesale and relationships relationships we business about the the back had -- as it's thing, element looking percentages in over our our scale managed of of think having this me for to and have that So parties how both And think a been kind company. traffic involved. my wireless let kind the kind we we've relationships for we of returns And perspective, true I've business and important has win-win wholesale frame very forward, on been of couple step of me we our at business, maintain aspects days, and

help start other. would in accretive Second that back to Dish think be Dish so to We access say the And thing the of time carry demonstrating traffic, that to again, that they return may successful, given and traffic. to thinking you reasonable I like keep should maturity, somebody are, moving believe in what about particular the infrastructure and of a going we've and over haul, the they businesses, not drives is case. business along can when construct to with. over and between ultimately that And right AT&T of the we've about we that's the one or And for going support when with they is and there's that kind business we retail our think that infrastructure for nature a of to infrastructure view, are possible. I that point we their a I of think own achieved put I be networks what continues traffic parts set as and us to that always and their frankly, and it's this Dish nice business. do this forward their ultimately model, business, its that choose where partner, be as where that much that to traffic. them. going you good what our as looking thing, have manages on we wholesale and think to do around of my build And into is, is to own given traffic for The to balance the in the on our and is up the successful a wholesale to company know, them nature agreement, ready them network, as can be our need successful long can we places they can forward grow it good things it done, aggregate we way to as business aggregating do their balance of be the interests and in was operate, way I'm

they that will based construct necessary choose effective comfortable establish something this that, the this But levels that they terms I while practices is think arrangement move wholesale the grow. or a on think you of discussed, behalf frankly, and our I well, a a demonstrate reason I I'm you necessarily forward, know, XX-year can this. want would I motivations an that continue he about were being all Dish But per terms that that on greater place. than industry more current we'd us. and of in they processes or a could more to business to minimum was minimum have deepen think commitment with back-end And a chance to is, disclosures minimum they so, things one of the is probably with with to be when those the that capable or to I it can like in we front-end to that. be with this go arrangement. to as do reasons good maximum about agreement, of that are the And speak than is relationship get of I And something parties commitment be Charlie. we loaded annual a on felt certainly don't aspire what explore. about in on how open. have ultimately Dish what need a like the view this it's is established in commitment, that's Spectrum, lot agree assessment as relationship where as them one options them, we year, annual that their a there are very And see do comment should on know, possibly capable being partner commitment. this see we I think and for of will, also been believe, going retires, say, That's has put are, have of that's commitment, that a in effective should and think you we could lot and one their and started we not than think as to this he what and us annual sure in loaded, ultimately has to both to but think performance them the do market,

That's done can variety a Spectrum existing some of ultimately been put infrastructure the pandemic. have licenses our their radio to and where We through use deploy of spectrum.

Jeff, the elected for add? to a well over Cable, want We have do wholesale maybe think going agreement a of and or parties Verizon team as Spectrum. occur and use is forward what some in wholesale But we would no market, to what any agreement need add of like I that, there to pursue. any to with does with to we than move other know have look do course what look, basis. right other And the specs together, do I those don't on did wholesale the with know options now, job that, regs us a we've we some to anything think that great as open you of that frankly, will what's other as is different it's that, really you anything done to your entities on options it pulling to their other happen and us relationship, keep evolutions longer-term mind

have several very been all capacity coverage year, has into been the from to that traffic positive, think begin has going cadence this and organizations the of just latter this two with would the the say the of spectrum and something much it, migration the so network years, over last we've the migrating and technology afford strokes that XXXX this to we've Dish the and can ready to working the of us I from made and think our those on. you between I something I making worry the the transitions part John, in with actually I'm got broad we operation organization And experience looking is investments is got to the and like position. covered towards I not seamless think upgrading AT&T that getting do XG about XG forward comments our

think taking here don't I million a year $XXX around upset of so. is out about anybody the competitors either pocket

you, Got It Thanks. sounds guys. okay. good,

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

Morgan We the have from ahead. question with a Please line of do Flannery Simon Stanley. go

with XG Azure. Thanks. more gives to that learn any process, Yes, much. status, you great any Media the you? about that you've around very numbers that deal interesting the thank et details be Wonderful, Jeff, opportunities the Microsoft and the a Warner Discovery on regulatory core on did Good can It'd for of cetera then update give and an structure, just you deal, you morning. updates timing, got quick tax us

line that Is is legal Simon, or a X.X. change, that, Simon,

We'll the figure on out yes. transcript, it

the is is think lot do. that regulatory with work you're of probably production we I things the on of that we where no enough that's say right And of would with news. any see and news tracking We're to along document process good been problematic, are process, can net nor I far agencies expect and a it to familiar think it's I requests their is Discovery where enough that think now, the as view these basically or is that so all underway. to nothing providing we on anybody And There's responsive particularly position point you reviews. developed has that something. begin that's effectively can information they the

the it, So, for to internally, would operationally I'll expect are prepared all when to normal approval. we steps going through move tell you be continue on we an

the it latter if part to to it happen. were straightforward run this that, a just point, insight take the do through have and on, to that, transaction, other expected it's to normally I what's had and think at I than suggest review. we get it's to we'll that the fulsome to pleasant And going announced anything not a bit what four to be expecting point. interesting than to year reason be think fortunate prepared be through any think enough a indicated, done. process we I'm were be when expected. you little It's for to of But had year, do a cases, of and overview have to nature if that, the We've we'll probably Simon, because faster going going and supports early, probably DirecTV we'll some of I transaction, be we transaction, at this surprises we it's as next I process and to approach close this as don't going little And it was it certainly complicated moved the end get the we we more bit some in we to a a for it. little And as I Jeff? as of

doing a Microsoft And service. scaled quarters, edge this, that were in things products We're doing the Azure We capability our one enables the the resources compute that to kinds while how We're not thing brings and business, got Simon, network operator's and this you bit to out AT&T us to engineers to is the essentially in on example on a it's wide particular that forward. focus firms it of hard fiber build offer another a point once work any kind workloads, we've details. teams our core of just tenant consumers that appropriate the core development financial our relationship the to market. scale ranging across strategic deal engineers think specific by of the shared it that we really in in network the some Microsoft retain the last Microsoft edge does transaction, customers. anchor and I then this the choose services product referenced service outsourcing and network our deal broad to and our two trade, has expertise at level functions. several provide upon going and from we're we're and to supporting and very I've as going and Microsoft, and that their developing to organizations our they for partner network years, layer, develop between reallocate over to And stack capabilities. has our disclosing deep this, this to on our XG doing cloud things, to for and that relying our put who that day this is read efficiency is differentiate and on and Microsoft network for the are scaled over and a like press have rely and we products a here function. team partner scaled network our to labs on compute. network attempting intend services for we're the kinds a of compute of What the and virtualizing work our at scale not is we're not with been a and Microsoft to in at of capabilities with enterprise our our And you that as do last companies But engineers living, network the and that, going as control and out the know, is four John enjoy our energy we solution the storage this benefits our our And across network. day

timing? Any color on

This we've of we got it's appropriate more now for deal teams, will integration disclosed on in product of the time. a not process No, or just the right announced capabilities. two go launches and the

lot. a Thanks

you. Thank

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

And with of from of line we Please Bank America. have a ahead. the go David do question Barden

Maybe so could. much. thanks guys, I Hey two if

sale The what first the And about the obviously thanks mirror question the it as image doing having towards Thanks. is, those for is into from talk what of the would is earnings perspective there, is, Can be, baked and operational capitalized growth and are one the guess a the today. and new laid from outlook? EBITDA approach here interest the question kind outlook factors you've second [indiscernible] new for down helpful changing current impacting taken Pascal, might you out information Rio interest free factors the I from benefit dispositions the two inform kind to what that and of of two impact expense. earnings flow outlook, DTV depreciation cash DTV your new of to then about be

thing, detailed provide the But said, yet. help to will guidance with on we have provided details DTV, once Sure transaction we once Dave, the we not -- modeling. closes, we as

amortization. terms the it as of Think $X.XX that balance the asked about the said Rio, of depreciation $X.XX year. you of In about you to stopping for impact

and significant $XXX saw capitalized not QX. we I my interest So, that said in billion just, it's about you in as remarks,

being model that the you about think as zone should forward. So going

Thanks.

-- And so, Is the the top for it still more line. kind if of the as suggests that I balance do of of kind that that fair? math, organization, it [indiscernible] stable

Max. in fiber, fair. mobility, I think But and our the investment HBO board across stepping significantly that's are remember, we up

growth, some EBITDA expect we're over expect revenue the my -- flat making. the to investments top-line I seeing continued we And EBITDA return that the of in translate comments, we're said up So be transformation the to you're and quarter to self-imposed in to Over next And going drive time, of continue we into modestly. which time. this should delivery is effort this leverage, operating by improvements.

we're by good translate that is optimistic we're this we're revenue delivering growth a And The businesses outcome. the and of going all to cash is investing really and returns as into businesses, growth. forward. our so And profit pulling evidenced that going are

thanks. Great,

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

do we JPMorgan. question line Phil of of a the Cusick ahead. from Please have go And

Thanks. guys. Hi,

to about we it a promo retention maybe running. in year? But There the well? last year, of keeps you. then else come in will driving follow-up, go-to-market wireless can from new just retention phones phone? the network? of lot changed your strength them see most about launched you industry those quarter and And Or questions are talk this do then as the First, what you aside last quick to John. strategy, the convert Thank promos what has do new a them without boost And need customers

ahead he his just I'm was it since have have right to him out. and I Phil, since So, going day Jeff in -- address day and here, go

our the in past I three constructs the the to despite I've to distribution question in prove as business. model think is operating And and for elements. focus But a element a highly the four consistent we tell encourage I Phil, across experience. second when I first our sometimes over last wireless competitive I'd about channels. you in simple just offers you, is our the And that on and be offer execution And hey active environment. quarters. that think -- have our got market. on been is quarters, And and four think appreciate sales the Yes, simplified the We've this continues it persistent go-to-market to overlooked really is, the remained we about sustainable, it, customer to have

formed our on of, that network. row have and also existing all the in into customers. a put of the in the continued then positive our our year year nation's from are things just set are but And experience here customer capital ground base, improving Our to join best advocacy services. work aware I responded earlier, a net for customers We're Pascal giving services. in and quarter, not with segment. growing the we're our second ad that taking And achieve been first It's and record the results the set growing growth sustain we've enterprise. we're consumer, one products across mentioned XX-year in also business, for for network. we've our multiple able NPS It's as in position, wireless in to in a of of choosing a growing continues third those record we've newly combined board. as and think ago, turn Both market competitors drive AT&T the we're grind our those our organization in but and two the And the other net teams for growing us any and share products subscriber segments. in to are And and small responses particular network

are so the we that the share. XX.X% of a When market in little grow through growth telling us got growth, that market. doing We've top over the right. just third short, you we're the customers revenue remembering line place subscriber And are in themselves something

doing right Our to transformation we're program well second XX% through is shared adds. this optimization, sequentially. and here operations distribution We're it levels quarter, EBITDA year-over-year now also to as and as able at roughly our drive growth the trajectory our growth record in support of efficiently to out XX% and the growth net mine dollars

leverage us achieved is a to work sustainable, model that that got gives confidence And so operating this we've this lot of we but do.

we As share have still position market. place a I mentioned, third in the

XG base fully on our made base haven't We in unlimited our We customer cycle upgrading still through the the of are early existing way plans. on our upgrading devices.

are And so job. doing a great teams

satisfied. strong but focused our as getting on are very feel to customers want. the we're we're long what I response, about positive in it. We market, we're staying And with going position the stick as

look variety make around a would for we at, services incremental a there of factors. speaking, people strength terms I and on. a what look these they had are understand one can is the in there I are any on think high why sell, And with spend they generally money don't cash utility reasons. in have otherwise to flushed that of people And probably, the things And of the I overall and that Phil, One I'd many number may decision say value, is margin, different high for obviously, probably that. but the I might've thing market, particular

I been suppression been think has occur in that direction. on clearly strength, and I as the secondly, value movement some things prepaid postpaid some think has and there there market the

And how actually of to about economic would an I a bit call the Third, of you little on think point that decision paid adjust Jeff, these I probably having When would versus are many is got for. think what numbers. else some for know don't in to? you numbers an industry. there's customer the you impact paid lines anything if of aggregate you not that

No, I wouldn't.

I it. think covered you've

Okay.

the on boost then conversion, And thanks.

I debate T-Mobile whatever will what arrangement of that happening think is there around discussion we've there obviously on has what's a and necessary has customers that there not Yes, a when add to what over is of work And is on pace what's would in, anything device the boosts be entails yet and the is -- where still and Jeff, is their little got occurring. think of I that's change a play, to segment commercially some situation -- it ultimately I bit of occurs. public in played been those. we're and require total think path but through middle out numbers I think those yes, then that additional And with, that it and if were a how to you there that is And of that? network come our they out. to the exactly there

transition, they're device appropriate. Yes, some XXX% you've required a easier to and little spots, it but not conversion a SIM covered require risk,

Thanks, guys.

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

Rollins. Michael next our line comes ahead. from Please the question of And go

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

homes when you that ago, I before in of a think provider back a to you about where you XG that entered sharing in into deals larger you of AT&T deliver prepaid were some larger in better DSL the three the it the all was a category. than investments resellers AT&T history, five AT&T percent years fiber And can like when going complimentary of next were together, that the share to in just those felt of transaction over and secondly, home? DISH some describing were it years it First, the earlier, prepaid was focus, take [indiscernible] wholesale John the the on plan AT&T U.S., to performing and the because can more lot

the you're directly when that currently after broad more after DISH, maybe customers going that revenue complimentary with how competitor relative that same time set evaluated going and be would or market So a be may the to did DISH you that AT&T a addressable the you proceeds? not deal this whether of to competitor consider

Michael. Hi,

on the why of view then So on touch and have about don't I and wholesale how and go broadband, ahead of your point think question piece. we answer for I'll your back come on Jeff coverage footprint

got network delivers excess Yes, reach to point million over We've POPs an copper DSL. to XX of by is over speeds or fiber, XXX Mike. exceed DSL. speeds, passed cable I long-term that of plans capable with the homes our we've that which disclosed, million investment XG today covered would clearly

to invest over of of long-term our the we'll made that or or fiber the for in spectrum options disclosing demographic where areas. strength or wireless, for wire of serve and legacy that we're the certain as homes line, network by sub-six the the POPs. launch rest the strength. scale to market network that technology leverage number some of DSL wide We network. with better up to decision make choose wireless fiber wireless not wireless terms got existing We that, in customers, that choice served off for and us with is areas that in Outside but we us we've with our covered fixed generally doesn't a not wireless providing to our sense measure have migrate assured it internet, We technology, of of XG

your disagreed I premise. front in I the probably So, think your comment with of Michael, end

complimentary terms of on we creative we there service network, mean, are that I profitable our think the portfolio and a we traffic owned couldn't been do position that are in to. and needs. covers opportunities to isn't of things time. owned an but the there services, period of customer think out we've operated go for and bring in I breadth base a that And some sell whatever really customer operated frankly

business, We have in the plays strong very a which value prepaid segment.

that variety of a are have offers pre-pay there. different out We

cover great have things. of gamut that We offers full a post-paid

like an MDNO as are other on other But attack there customers market to always basis segments. that there that's case. yes, I'd basis compete well. go on owned those resale So, been or and a for out operated and operators the And

concentrated. become a more I is MDNO a say of the at are market, than different and bit is, little others we're maybe wholesale in would a going toward future occurring, in resale number moving U.S. that Now, I the competition the think of direction bit forward more to where than as owned kind of an there options a operation. little result And operated

wholesale to of on to as you're either different continue point, coverage, result a you some an excess Jeff's where capacity, put your use some you options element going of And have place it we're have so for to if partners. can valid And be you're cost traffic you to see, that to go to to wholesale have pursue in to out want probably choose driving if where and that. put market, network do you or consistency and fewer fixed traffic capacity your you a that obviously use incremental to in choose up that, to

And opportunities businesses. for core. case attractive is where for as deploys the as this, and in complimentary that's would a think an part are relationship, think go I you, of provider some are also us to as they to which we here. do something a as think is infrastructure network you I when there I deploy to infrastructure, about And think and us we DISH about, do us things our that to both again helpful broader business capability tell just really this wireless wholesale beyond the

only to call we during in that DISH the your Yes. I John earlier add would just market. the expect successful comment be to

to and success participate get competitive the are their so we And here rather dynamics in unchanged this point. at

we strategically. how analyzed it that's So

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

of line the from Doug Mitchelson comes question with Suisse. ahead. next Please Credit go And

app a for much in in efficiencies for to One launch and subscribers to occasions you of wireless, to so kept hear, to there? new HBO mentioned on much for the over. in What are how since existing actually; downloads, and Jeff, customers I the specifically of think launch. moved less on launch over It the the is Latin-America in X.X we're the HBO would and far. it's so is Thanks addressing were Jason, Jeff pivoting and we out much focused as the ability much. we've And few percentage so I excited track of million cost Latam support that structure? cost figure acquisition. for be How upwards know mind trying Max subs super about HBO interesting and learnings one versus HBO has Max, to promotions so Jason Thanks What revenues you've subscribers existing from Max much. and you were

I'd we're of say Doug, roughly about through. transformation of the way way the got in terms third of go. a two-thirds our We've agenda, to

stores be our the locations, it. well in buy optimizing early and themes at indirect distribution as online our and agents retail our we're and and flows. like things our takeout as of around Key So cost or innings digital transformation elements

at we've through than area time managing product ailments of We're have, a where transformation we of a our our of we're some in experiences ever Second and now volume past. the and and customer percentage self-install And is higher to required we're the digital as not point are perfected work but that the some only by also self-serve to behind able frontline lot enjoy the a online, of the platforms scenes capabilities. more resources. us through flow our technologies that's and experiences supporting because

got IT Third, And take center just funded, teams drive simply are efficient hard think the transaction. in inside our day inside these of our are to way per they're out more will and go, day to and it. hurt just kidding, we've guidance probably two-thirds other our it operations our and call work, at of outlook, time, the grind initiatives of and and planning, left a organization as said, I work, at I

Jason.

questions. the for thanks Well,

In two overall the launch. feeling from was end quarter. days Beta far learnings terms the A an of we're Latam level, about good only before at of so the very

And but job so one did that not only The but details, sure put that of in in number new for not remarkable proposition a up the lessons, certainly and mentioned you very modern I'd this distribution of strong we America. making team It's is value we things one product But is obviously, value. lined planning have terms the and content biggest and the very obviously to stories the service. we're original had library. foot is a also have best And works. finally, this productions, we're in launch, tech terms got other our forward the healthy proud And America. that Latin call. of. is in Latin key. it's three incredible sharing the throughout we ahead experience the distribution a The of then terms an on And partnerships And

last we're not migrations, incrementality, additions this this but question, terms at your in quarter. so. for moment, seeing and certainly and in the in for subscriber Doug, next material so HBO incremental Again, of And call

you both. Thank

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

Feldman is line course. Of the question our from Brett with Goldman of Please next go And Sachs. ahead.

Thanks.

like there view should how into you've what was you. you on terms us you're about adds, side, be still If could for match an theatrical that with the WarnerMedia that it think going cadence an first day service, that you going thinking fiber going from unique you've of opportunity Can through you've what seems forward? that's got then Thank company. maybe us strategy your on HBO Max in and plate insight I for is the bundle. the for permanent don't some expanding months shape but you to theatres. in fiber, mind, or help that six footprint, a day that, learned I but pretty net a release was just meaningfully had might the give anybody's step know, opportunity into on of a timeline an And slate you're opportunity strategy net in year, was the whether because hoping up certainly follow as on a better under to can the you consistent adds, up penetrated, this the you're and theatrical more be

why the one? tackle Jeff, you don't go ahead, to first

of have our from Brett, built Yes, the year so been aged quarters fiber prior footprint the bill. two essentially selling first this into

that the deploying next stages of of million X year. some early bill disclosed We our are we've currently for this

the bulk As towards is of Day, the year. online earlier, that half to of going cited we the back Analysts inventory come

one us my expectations online. our to said comes price It's product out us net for some here XX% exciting wireless. thing the the a as so service you into the up of and that's got durable as continues in the Two, are great the value of really scores is products of new NPS net as technology. opportunity And highest a the to actually performance well point the those AT&T. up Having that, and be other performance strong is like fixed inventory It's best-in-class best step add relationships an services given offer in And households as takes that proposition. our that's first-half that industry. with year move broadband

quarterly perform of these a plan. are execution each we're And continue to elements and so, to game. is going And to is a just quarter-to-quarter. building long-term believe improve. we This momentum This continue not

you do Jason, to want touch day-and-date issue? the on

Sure, question. for Brad thanks the

we've a revenue in of highlight. I'll what ways. motion matters. comm, that in to, million By $XXX probably two One I'd it In it's of number the format theaters. which highlight learned, the absolutely And this done terms there's quarter, versus released picture things theaters. we in it at over matters is matters data But

in about day-and-date all not our will And home, feel theatrical in to pictures title, absolutely, and titles. it that given also They consumers from of that matter response we've continue terms exhibition. We clearly gotten matter it just very that when of motion have so, at the response so comes good home. matter but and to from the the

In the future. in things where of the go things terms in terms of

don't 'XX, was windows I theatrical back way it's the going were to it as and fair whether card transaction anticipate between I've and lengthy certainly said think 'XX, all or say publicly, home else. quite XXXX, something world was in an where I the this to or the that, exhibition, before or

Warner is producing over shorter but the windows XX-days on day Max to portion specifically, have we'll will motion that slate for available XX So Bros. one. HBO a also pictures be going of on be our

you're see consumers works going for to to that not industry partners. continues works and innovate continue ways is only what and but I so fans, in for also evolve, our business that And this think to to

Thank you.

Brett. to the Thanks the can next questions, move we very much Operator, for caller.

comes next Louthan question Raymond [Technical with difficulty]… James. Frank from Your

of the bit you've FirstNet, think pushed on on been AT&T? based a more all consumer we that And the and follow-up net new just can based do point And really there? we fiber see out? Maybe you. with the FirstNet can penetration broadband have you are thank what the little on top-line percentage where consistent comment Great, start on customers on growth that and or secondly, wireline, Thanks. what to

Hey, Frank.

to the to looking already We to business. have the in expect at accelerate out, Pascal achieved broadband our pointed X% that in revenue consumer X%, wireline only And as business. continue we growth

we've that And confidence. so got We've made pivot now.

agencies we're commitments FirstNet, ahead of all terms with authority, the build our FirstNet out In over XX,XXX and and of were all of IOC payments. commitments

wireless this competitive position other the of public strong to in business element result of I has AT&T, that on share million, take and As and that, in would FirstNet a in a unseat a leave you -- community. we base over not has X.X safety new for going I'm share, been held and base of what just comment are with highly part critical percent and possibly market or have subscriber a is peaked the us incremental to to growing carriers who long

perform signs we of And any that very see to so, program down. that strong and don't slowing continues

we we we've will pivot profits get add one that we that on done thing the as of wireline, year. will similar profitability quarter, in make to consumer year. would from they continue to the QX, the said we expect revenues, of through I way trends the to expect QX to through back-half with our we I we Frank, what the And as first other on Hey, part back improve and make the saw we as improved

Thanks the for very question. much

much. you Thank very

move can caller. we the to next if Operator,

Please comes the ahead. with Synesael from question next of our line Cowen. go Colby And

you. thank Great,

then Doug's $X response in is billion getting relates the in $X.XX to response time of flow distributions relates there. you anything billion? billion Jeff's billion secondly, one, is question And coming the to. to that you've as one now helps that to think investors two I I number cost WarnerMedia XXXX dollars things $XX gap there. guys any it and worth about, things besides And $XX that DirecTV. And you two billion to remain, that guess talked $X.XX cost cash I you plus to also effectively billion get synergies kind you. cost for color through get debates you that number I actually transformation, to bridge the was the guess of else that synergies as you've think being quite it to one that run that from questions and flagging, Thank plus when the the think don't that on guided the that two to there, I have just one-third billion outlined by that distribution components, is how in mentioned $X one-third is that off through in free businesses the you've the announcement the EBITDA there those

to of that the of the savings are mind, our do closes, couple cash $XX in $XX transaction once expect and And can that's debt DirecTV billion we that at you interest think you August. A points down cash to in one, keep when just coming our significantly the WarnerMedia in. beginning after of net roughly come look interest, billion, for go meaningful, will fairly math,

the meaningful currently in the a may spending. not our contributions you WarnerMedia up believe, are savings expect one, given occasions. right now, we're experiencing So, from as meaningful we content said of this two are overall, a that step number we've as interest, on Currently, in we

had consider I when gets today to billion. you where those factors, relative factors, how think you $XX and I two to to those think it So we're that are factors things you mentioned, other you gets the

accelerate the the of reinforce reinvesting just into drive we've as things described the just we've through correct, been able can lot $X a which around we've that, about I margin of Colby, market of previously, third you, a to improvements we the operations been we way billion on cost we're structure so our to that shared that the momentum.

and the the described what consumer that heard momentum the market we about meaningful move And the like we they structure we look, time, we places in the where the on get necessary going they're in are take and them they some products take equation an it impact through growth line. pretty think little you some comments are you is our of a of major of out and calculus at the we're of on that's this numbers. the I we those that's a third, third, and back that part inventory and do, our through business that a footprint the have final move we drive of And working think of targeted about start some and we then is to As continue bottom in the as of back it's we go the hitting of is gave the second, seeing for to we going want fixed of you done, of but line, have also made if it, the market, those that. and restructuring of keep our of hard it these do efforts, up we These that that's margin going expect there, cover description some have what some to the forward. terms to But things of and as ultimately a that's half our I that's the pivot to into that on. you, And want those how through we going can sustainable to with to bit a our doing business in part be fundamental operations cash to you to move we comes And we some do what's accretive a of tell move and move as And on bottom we when are geographic space wireless associated the would to then to it in to we're products parts have through them, just cost things. forward asset stuff of that running. things bit us this. Jeff element we're that little on end going company, we

Yes, that the for WarnerMedia first years is two you so from transaction the closes. remember guidance the after now full-year

the business remaining our given in grow we'll between the seeing believe and then we're dynamics now that marketplace. we So,

of done, just that $X one then then point And one-third savings you broader off cost quick that's were clarification, saying there's to billion target? the Great.

right. That's

thanks. Okay,

for last Colby. for one much questions, we question. very Thanks time have Operator, the

Horan comes ahead. question Tim that And from of the line with go Oppenheimer. Please

Thanks. radical wireless, quickly, of -- And do up on well possible on to antennas be and just strategy same RAMs wanted and in transformation the your company light them. if it the infrastructure as relatively the people they John, to would sorry, and pretty for Dish the passive vein, their non-passive meet spectrum so congratulations the some that and

Yes, that technically possible. is

bring spectrum As broadband. to industry to to during needs pandemic shared John it support the life in the for out, pointed the

that And that deployed are with engineered are assets our so there already are and today. radios spectral certain our antennas

And point? requirements that at the the Dish build out meet FCC with has on this

I'm comment not that. on going to

customers, digitization radical have? of real for for of just number reduce delivery partner and a experience. same And do the processes hyperscale the point, that you and go-to-market AWS lastly, with something the you other and digitizing type obviously, just they may stores about it have, lot then that a thought other the same really and the you job whole of customer would has the Have phenomenal will on strategy, day there's AWS done need AWS

thing months. much the operation very We have same last of our over in done XX the

gross higher we're adds to with are getting a volumes our percentage distribution than transformation before doors of as flowing and fact, we call our channels. In have of our result of a operations ever fewer through higher our our digital,

so, we've out. that in teams against that opportunities those day execute day And got yes, and

that of in the of what we've we've are tell on channel work folks changed also a I But going about going more think as and kind element supply we terms we're Tim, course, approach to that accommodated an of there's And the lot there's with they of address is, will our frankly effective that of of we on logistics probably it to how a omni underway chain enhanced you, during right elements behavior, and realize how need lot to pandemic, that, around and a an servicing be reengineering chain have forward. fundamental of now, learned supply that. going we approach.

Thanks very the much for question.

John to our comments. over final for turn I'll

brief. real be I'll would this. say Look, I

enjoy all it, this joining And this business. that I'm summer put your as of I came the execution we the chapter. I in yesterday's And pleased of And of what very we to say before to think with thank and begin I you with your the soon. it's place us framework interest with the rest in in that. we're that's announcement focused morning, momentum and you those optimize look would as as to simple on the like the our hope speaking I'd bulk RIO I performance and on. forward you for all business.

your for conclude AT&T And ladies does gentlemen, and participation, conference today. our for for you Service. using and that Thank Conferencing

disconnect. You may now