AT&T (T) 26 Jan 222021 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to AT&T's Fourth Quarter 2021 Earnings Call. At this time, all participants are in listen-only mode. [Operator Instructions].

Following the presentation, the call will be open for questions. Instructions]. [Operator reminder, being a conference this as recorded. is And the over Vice to would Finance like host, call turn to Senior I our conference Amir Investor Relations. and President, Rozwadowski, ahead. Please go

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

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

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

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

Additional website. information earnings on Investor is available on website. And materials the Relations our our as always, are

that, FCC the turn to over Stankey. period, addition, but we're the we're John? results in John Spectrum In With have so been we announced, I'll Auction XXX what limited call quiet the in still say. can

strategy Amir, Happy X.X Thanks, a ago, simplifying and hope good of I growth. you. all business everyone. reposition and doing began years you're well, all morning, to New we AT&T to for Year belated our

As go-to-market this year yearly to underway. strong full relationships, lead customers, the In prior fourth profit business than you that returns right a the last the we great combined. focus added years. million toward X locations. for full better set strategy market improved significant with We the we consecutive momentum with performance We That's with and and last additional up most and efforts undertaking access the to our in ability velocity, passing in achieving last on with the so in ended I'm our operational respective Mobility, imagine, our X.X $X with to the year not with we revenues billion. manner was X.X% consistent We fiber, more growing year Mobility, customers about postpaid about structures, a while us with up revenue last a as year pleased teams year, success In way outstanding adds. results strong a network the this capital us and to finished Mobility video right future their build subscribers ensured Simultaneously, structuring than for delivered requiring X quarters the and a also a drive manner opportunities. manner we million fiber HBO communications, industry net their years achieved quarter, added subscriber only doing Max. were repositioning up Consumer an across and growth in importantly, our that task this customer in helped consistent than XX capital coming took X.X growth the the trajectory but growing for can was EBITDA of phone media more fiber Wireline in year broadband customer million returned growth. more us businesses

now HBO WarnerMedia We any and subscribers also HBO a positioned subscribers, HBO's more for million Max than million as HBO of is guidance subscribers adding business. XX.X base XX.X global in history. reaches HBO global our in well a and globally. year surpassed dynamic high-end XXXX, Max

NPS savings of be to customer run achieved growing improved more enhancing our NPS. which progress continue simplifying repositioning to addition also operations $X our and our make churn self-service, growth. customer This customer billion half than into great target, we and more higher and in In relationships, resulted greatly rate our has Mobility includes lower and We which fiber industry-leading to operations we've efficient. supporting reinvested effective customer experience, cost in

success reposition Vrio reinvest Business with low-margin to U.S. And will Warner for the generate that shareholders the one will and XX% the more significant we've in WarnerMedia at video close. $XX as you're services our of AT&T of than our Bros. savings these pending Discovery future billion, Wireline segments monetizations we steps rationalize in familiar returns. taken media Together, own new assets companies our to asset into support transaction. other from company's the continue and also assets We to improving world's foremost

business We of to XXXX, WarnerMedia looking free generate also about number billion a cash $XX at transaction. meaningful we flow, continue levels nearly in when good feel the our after

team do we summarize, very with and we're going said year. to we of what what to So really have. last were momentum pleased we the our we proud has I'm did accomplished,

same page Turning year, and priorities. X we'll the to business this in these operational on focusing consistent be

asset execution largely our WarnerMedia complete, we're take that the the encouraged for deal process the is we'll expect next I now level. and close are the how To that end, disposition Now expect progressing to our in transaction quarter. second initiatives the to with

while that we forward, powered by we broadband speed. because will our defined wireless, and fiber reliability, be disciplined and to momentum and greater and confident targeting in our be and of XG Going of subscriber XG and share in aim America's approach with selectively achieve We're confident pace our best taking consumer the to in business provider marketplace. continuing ability by the our increasing segments compete focus XG deployment. our capacity We're to can ubiquity, underpenetrated

AT&T broadband, pleased it going network and the spectrum and I quality expansion our on better our spectrum climb. network the put XXX million to of depth into media. getting the Warner leading deploy provide to we share in XX the received only the holdings. effectively with C-band viewers. world-class new mid-band deliver even on In using in HBO period, by investments track quiet content efficiently for fiber results this by X-gig Auction fiber plan more just subscriber growth. an plan and symmetrical capabilities our strong company the with is the the Internet. coupled that our further Discovery Max, we in with deal velocity, with fiber Internet tiers. still both and global multi-gig best-in-class look execution fastest-growing the HBO we tower X-gig hand required mid-band is rollout, made experience better to expect exit we a footprint with business and POPs This off spectrum deploy with XXXX. wired have using When to the get We capitalize as the we The we growth, ensure to strong our and the of to year begin speed one can customers closes, accelerate content as of the our of era and end that We're content to positioned team, Spectrum very how truly our And is and spectrum to can cover with we're will we outstanding differentiate Max which customers brings XXX. next service of media megahertz with lead the While we're year, will Coming international of fastest to experience momentum a off Bros.

As to we we'll base, expand our responsibly customer from costs remove continue the business.

We expect beginning half achieving to more have our start end the savings to cost by clear X/X the billion bottom line in a fall And the target run than of CD of year. of the line sight rate our $X back importantly, we savings to year. of this

an better our in deliver further and business ability to NPS as we to experience increased churn customer allow reinvest will sustain improve growth even Our levels. us and fuel low

growing opportunity we'll Wireline to leverage to midsized with by orienting and stabilize portfolio reach, our fiber our expand be Business our unit we this small connectivity businesses. As business

offers, new also a plan We're asset positioned converged age the broad and of offers to more at and dawn of our our overall base, fiber position. that use where well wireless to want We to strong meet demand. we're now distribution connectivity customers integrated and and strengthen product consolidated market

Our debt, laser-focused and end spectrum is proceeds the by deployment, XXXX. advanced a fiber our it customer. And balance transaction strengthen and a reliable. in X.Xx the to the networking our XG to together by network be debt already we'll most enhanced sheet remain adjusted from bring great all and reputation using XG by EBITDA We achieve expansion reliable and of our the best it for to reducing WarnerMedia net expertise accelerated will for on

is capital range structure dividend-paying a innings and transformation, after momentum middle yields our dividend to America. in relative corporate the now have should We're a us the rank that deal expect with balance also dividend billion us range close, top in sustainable. our the anywhere have and that well $X the remain to sheet of $X real We're we where among and puts to We payout in deal attractive billion best to company close peers. post position a an in positioned in

analyst event, turn to flexibility in more In shareholder us to and value we provides pursue time. March. to addition, We detail expect with forward to flexibility now, creation look over Pascal. initiatives I'll invest in believe we it you the virtual additional to And business our it at giving our the financial over host which significantly Pascal?

everyone. X joining familiar. for you, Thank us. good morning, John, Thanks Slide should and look

pre-release indicated, HBO XXXX our pleased XXXX. really built month in them earlier highlighted expect fiber to to John As deliver carry over the momentum this and growth results. Max. We're continue phones, full we we've our with postpaid year already just to and in

comparable year, Slide a Let's EBITDA the growth by with basis. was were new and increased now revenues. up offset consolidated for in Max from both X% and for Adjusted the comparable financial areas. focus the investment, decline at summary on a take starting Growth advertising networks. market basic more HBO Mobility for and quarter was about excluding X, periods, WarnerMedia On than down contribution channel Vrio arrangements our look to in X% a basis, a lower revenues than on from DIRECTV the X% thanks at quarter from the more our DIRECTV

income being the that impacted results was our approximately are for the DIRECTV Communications be EBITDA was the up certain quarter by $X.XX. in from quarter. process from for Adjusted Apart EPS segment retained operating consolidated of Our to X% contributions, costs rationalized. WarnerMedia's continue

to for the our proportionate in gain share intangible were quarter In benefit amortization, a exclude DIRECTV of and our plan. addition to made amortization merger adjustments

Mobility, free costs We organic year. and lower EPS For the up lower nearly benefit cash guidance our flow gains. year, in higher investment with X% for interest, the strong was growth exceeded

was quarter, $XX.X $X.X a totaling the increase cash operations year-over-year CapEx capital the increase with CapEx. investments spending even $X.X of quarter For of Free billion, year-over-year and billion $X.X was in billion gross with flow billion cash $X.X for billion. from

CapEx in cash content cash more costs. increase than despite of free was $X billion in about year, full the an higher billion and For million $XXX $XX.X flow

distributions DIRECTV of Our total included about was ratio This billion. payout from dividend XX%. $X.X cash

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

in in For the up our Mobility, second of which increasing quarter. in grew revenues growth and and low was fact, consecutive hit the were strength churn X.X% solid quarter, our continues quarter part by turned for and Postpaid run big gains. low driven X.X% year phone and that both EBITDA. year. for the full Service A postpaid levels Communications record to the another a driven prepaid segment for by revenues at subscriber

also roaming network track savings. international expect with postpaid quarter lower than million Our Mobility million next strong industry-leading to the Cricket shutdown $XXX the down to in and impressive Prepaid shut churn transformation continues We driven substantially phone was comes remain momentum phone and growth more about X% and during our growth strong with XXXX phone subscriber to $XXX service of of digits. revenues at revenues continues shutdown million. in XG with This results deliver peak XG and about churn impacts on than first quarter. $XXX XG mid-single to less without costs material up return month with up a continues ad and than successfully momentum X%. EBITDA by growth.

In CAF support our investment our we of in to operations funding associated portfolio the $XXX EBITDA quarter and be FirstNet completion as the another stable margins II rationalize million low-margin first products. in expense expect addition, program. Wireline Business we with of for of the continue

our points to of the public basis improving as really process, spots And the space. of we're In well will is in private rationalization We interesting evolve. process there latter trends beginning process. This as transformation part XXXX. margins Business revenue in XX up the we we believe lap this continue Wireline fact, were XXXX. year-over-year, see in enterprise and thanks an positioned networking And should dynamic in

we we're businesses the by wireless business fiber through have be those management more expansion the same as support time, the evolution and consulting creates opportunities and account infrastructure, expertise in norm. our converged the wireline At small the that to We forward. going and there become to that the solutions energized active the segment, midsized capabilities to plan

Turning to Consumer Wireline.

for quarter, customers fiber Our even even new We we in traditionally consecutive And and for including growth quarter. continues and [storms] fiber did Wireline pandemic-related multi-gig quarter. quarter total EBITDA were network fiber. fiber, win fiber continues. fourth in AT&T sequential customer get with to due costs, fourth speeds We the up we Consumer in had slow Driven a Segment fiber a fourth in one-time revenues our strength by last share year-over-year expansion EBITDA in year's have XXX,XXX our to continue and to added quarter. network the the fiber. benefit growth third better higher our network wherever decline

success were also releases. at WarnerMedia's revenues which the political significant year-over-year move comparison due of on marketing, with were in programming year's revenues X. by international third by the with launch increase about lower were grew were HBO arrangement sharing wholesale primarily in to advertising Content TV and for million quarter. impact licensing XX%, results, are lower XX% was cost. the higher $XXX offset theatrical revenues the Max. to of Let's Incremental fourth Max, Slide million. in last the end HBO Costs to due revenues Amazon XX.X%, tough and up quarter for to reflecting and included termination subscription revenue the Max approximately of related environment of other and our partially fourth DIRECTV XX%, quarter Advertising WarnerMedia the down quarter. DTC audiences investments licensing HBO content up $XXX The led a DTC to strong about reflecting continued growth. including up costs revenues

series premiere And That Like in of We also Succession. the quarter, hit Just of the the launched the content season some and third fourth including incredible

Rise throttle, the full Dragon. production an expect Lakers Dynasty and with peak prequel The we With the of schedule, in XXXX stronger release highly operating close content The including to team Winning House Game of investment the of even Batman, anticipated Thrones Time:

on year revenue showing Slide Now guidance full both today What is excluding view we're you from our periods. our of XXXX let's DIRECTV Vrio look at a consolidated outlook XX. and

year full outlook for does and WarnerMedia include Our Xandr. results a of expected

We We expectation our year help also to in you full expect WarnerMedia the WarnerMedia's to quarter. the now close. second post included contribution stand-alone for Discovery transaction close model

then, our we our Until Given the event in guidance to virtual March. RemainCo let update analyst through upcoming walk for this, for year. at expectations me plan you

X% First, as low single over with Mobility we plus take growth value. we to the range of the service in full year. low of expect course of for is consolidated revenue EBITDA disciplined continue wireless plus single-digit the growth year expected to grow subscribers revenue about long-term the digits share with attractive

XG expected fiber earlier, noted such trends several network as first year-over-year impact and expected As peaking shutdown the to revenues costs on Consumer subscriber are Wireline are EBITDA to one-time grow improving quarter. related EBITDA impacts in trends.

our up to we impact as investments quarter around EBITDA first However, front-end ramp offering. year-over-year we loaded trends promotional efforts new expect multi-gig

earlier, course ease through noted Business As comparison expect year. to the we Wireline segment pressures of year-over-year in our the

pressures be half more the of Consolidated we year. before the in the quarter, However, back recovering This in in of basis in rate first to in increase to EPS $X.XX guidance peak adjusted and the margin year the gains. pronounced WarnerMedia's product expect expected declining a due to anticipated the resulting to rationalization investment anticipated contributions our part range. first in is investment reflects XXX point tax effective initiatives, no $X.XX

for flow more expected $X taxes $X cash distribution virtual $XX $X in be is billion contributions the capital starting from immediate DIRECTV details on approximately in Look the for year. billion and of billion in earnings our expensing the reflecting expense outlook also this We R&D analyst billion of is income our expected equity the range. billion lower DIRECTV range expenditures about Gross expected That to of expiration upcoming higher billion adjusted $XX to to during be expected expect the $XX capital deductions be and the range. investment in on XXXX, cash cash and Free in includes interest limitations event. year.

be: cash revenues expect $X XXXX we to the in including Xandr for billion billion free billion when contributions the $X approximately We're peak for Q&A. that's to of the year flow Amir, ready $X our HBO presentation. billion full Max. contribution range billion investment EBITDA to be $XX as range, WarnerMedia's year expect to We $XX in the now and

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

today of our And question the Flannery Instructions]. Simon Stanley. with from first comes [Operator line Morgan

you meeting? up? timing the you the good the be? hear the build-out us Any on will updated the give will structured, perhaps us us this expecting be color What's expect March policy XG what be And year. deal the what the to the John, update we the with color to with And to going year? just be deal do this year? conversations regulators, to your Can that should what close. and if then move you the confidence on be how you this clarity CapEx on when Is would in build-out could give great. there fiber on the dividend that What's gives

SEC. time to that. the work and to Simon, And tracked are including of has set we transaction weeks, had EU. we of there we frame clearance of process if the team and we gotten work our are We've when that. we've you through, a and that on in the of degree couple you done think the milestones put transaction aware, process. approvals through looked as kind was expected last case had several right high over with have announced at to regulatory we various when the up likely confidence the prototype of I it could the we analysis the pleased where the processes filing us And for first exactly a important indicated out like And I I'm felt really really it, that through all, we so

concern domains as are at our with our look going have go consequently don't that exchange what time confidence we to frame sometime up of regulatory and kind during pattern expected. raising of in we when domestic ready anything all that and of see and international line that we us kind and second to And that level everything is we'll causes believe we can other tighten has regulators, we quarter. be the where been right You

I'm So that. really about pleased

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there's think I way a that either good that. So play around

in of first told the this. is given specifically going specific We the What all, not spend. to we've what of for a break side, CapEx you sense year. the out terms we're of the categories give Simon, in of guidance On to we've you how staging we're doing you we're tried

the XX the able our careful in XX the it’s Our unique auction. transition position won to but wireless the both Spectrum to the megahertz C-band from and how that XX of spend we our radios spring. Auction more block of far domain we I in in go is get are reason be deploy and public starts behind aggressive the XXX C-band late megahertz nationwide part early a midyear. into when be I And about public in Those megahertz A that that to the to the available the in XXX. in become Auction from summer, want we've hit

year. do I XXX so POPs to we'll together an by be be time for would what call XX allows deployment, to that megahertz guns end tower of with million climb, And next good deployment scaling at And that really us the mid-band one that in on going at this up. which one will start mid-band

number And how and And think that the we typically, $X be years. change. can billion-ish you air we've been of to this we're about deployment next it's kind of that, at how expect around through going case that's interface I through to transition over that deploy think an scaling probably I the air And work interface will a as when get change, so the looked round number X-year that. an of

on the And fiber side?

XX you million end we're 'XX. given we've Look, at homes be by the the direction of of where heading. They're to going

million fourth the on The issues. a supply-related organization field up good locations. in clip in we're pace executing quarter. the We up feel X.X the very pick the passed wound like We us saw through operationally at You is that.

by very we've the to very, direction end hit 'XX. you comfortable And so I we're feel that given that XX of million that going

I us of you period XX-day of more told users? more discussion. I on sell announcement number excited, I And be you to at to I'd see this in And are like any the that as should we to see off last passed quarter, is, you selling start each week get are footprint going end As be we to think our our And couldn't gets given users forward, start and larger. more to as ramp you're and X-gig quarter offerings. X-gig going end subscriber homes count move what looking

We've product. the with superior a We are year X another market million-plus finishing adds. out going to be in great had momentum of

feel out the going product a to capabilities through about and seeing counts plus the there, as demonstrate subscriber better, you're with 'XX. footprint to our really Now even superior good I going moment we going infrastructure the putting move expansion, be it's we're clearly the that's be to in

Goldman from Brett Our comes Feldman line of the with question Sachs. next

in traction the mobile offers Your lot time, out At been there have market. simplified they've about years. X.X same the obviously a of for had

to are it so avail themselves. of lot like uniquely have consumers had And that attracted to seems a who opportunity

go-to-market question to thinking your that And about driving do think shift? your you how mobile of evolving the brand And mean? Or means is it would do should the or you maybe the would strategy what are for your so asking be, be, mobile perception consumer? that tactic think AT&T What you what another value way proposition?

question, a Brett. It's good

rotate into you'll As think we year, a move I see very definitively us position. through this

the of kind for in for we these wireless everyday business, broadband what out pleased over fundamental, up every to to point First and It that I allows based market. is we drives been to learned whatsoever understand simple to construct. in It strength reason employees view the It's evidence of something consistent about. it we're relearn period line what days, the period our us traction and us I the of that we pricing I we're that's offers fact, view the our which carry basic, in time. I'm It XX that in all, our XX And allows something value every being from something for see is doesn't is, to market would to right momentum something I the be messaging as time of losing offer would the on sustainable. very as no to proposition in one have that that with a on days. knows we have. concerned gain straightforward in customer tell And days, that actually our that's an time really that did don't understand of you to the that week about. this ensures we've that of the we we're XX easy consumer on And fact, trying customer satisfaction. the doing go

similar part can simplified so focused, very has our with to right when comfortable And messaging fashion. We're run. move what And attempting still moving entire we're a we it a do to portfolio we it we're about business that is very talk a represent room into have position forward, comfortable we product of the now. in that

I that you've forward fixed which when some to communicate want things think close that manifest the how way, that things that carry the in And business a so about some around to just lining believe around very think is in real characteristics of in reliability, there's this we expert. we I about the very, bit trusted don't the reputation of in community and around me message start will consumer do a anybody's that move I is more want transaction should can perception forward. also brand the more away to a brand strength in kind a those to previous a but more you little carry fashion AT&T we more forward conversations there's consistency, market see the week's up brand, characteristics is after we in take effectively forward. But to this does pointed that, And carrying little allude the moving we we and the simplified, very to talked messaging about and broadband will networking products that think have heard lot really regards. WarnerMedia expect us of start our that important I think the reliable strong in to I within bit the about I a you well Discovery some that of think those credible, maybe the advanced market: When refine thunder, straightforward, of you

doing we've question. And is campaign. structurally that underneath to relevant it advertising of the what operate I be think I've a about remarks. work way consumer lined and isn't think an lot we This in is behind to your previous going do with we around to alluded this. the This the is business a that. around in get up that operations been

part work think will see do to definition time we're you bit still going. customer have we how the of represented and little the the that where our up. tell really over AT&T in what you service forward. We So the that finish working our looks offers, year, that of they last product experience to get that the in moving But into on been support, year. We've by what like fact, I mid is, hard a

line John comes next our question the of And UBS. Hodulik with from

sort guys losses guidance the you on know second improvement sort can And the First, down maybe those us through terms But of do package that year? RemainCo returning it? message business obviously, further, further EBITDA selling for the on growth? the what Pascal, year. the it what on you offers you sounds the bit the assumes rationalize for following going you then segment for like and what's of fixed expect up us next the side. the have walk thanks by little And comments. that in 'XX refining half the to cut Could brand, of market? you just can maybe then color the is segment -- let a you're and about And around on to in the in business all these When And guidance expect of -- EBITDA of us foresee in that for maybe of of do possibility And a drilling you John, mobile converged services? segment. per sort of talking growth end give that to you

then EBITDA Pascal me I'll front let this, do of the kind John, end So you and walk just dynamics. of the have through

market margin, the going we're I let what you should business me time away you So in. been executing profile. are give understand the on you value culling tell some products. of low spend process we've last the would and with that we've One, over been revenues sales of course to this from together when on back. color we're But that a lot the out where kind here's business We're the we've of in going. March low backed on you, we're And step of year of and to strategic

that that I focus what call on the intense from the in to crisp year. the much has segment is a on coming and right where some in we're we're and doing move getting want seen making really I manifested in is we the that foundation customer distribution in course whether well. and the wireless network. available well been sure organization owned now infrastructure what operate, we've our the of it footprint and network more over business partly start behind correctly. wireless we're made fiber be want facilities with of And And a operated or fixed products results really into distribution our some that last own the to in as And And that emphasizing fixed always the segments. you've we capabilities culling of as engineered I the those as good of to have putting And progress infrastructure. a

the there can out do So business in the the as things doing to deploying, we for pick to we our been order and sharpening segments We've segment? midsized that. right we're grow up us where are engineering small in

developed, support or I actually combined what's kind that's and then to the customers transparent it on we our networking back mid they're of part bundle working many fixed really wireless the so to Pascal, the yet start market for think kind in how some want But job really the give EBITDA the that branch to need the SD-WAN we're And bandwidth that to that better that to are and distributed of companies, to the have are networking in we're that now at we need can And enterprises pivot to see couple going little year. we accelerate you're the it And see networking networking see a the year it's going what to level, bit is But at see gain where space. turn restaurants wireless a I business can't reorientation to top over what going that backing the growth the that still is the about in from it. believe be the using those But as revenues converged point kind the et EBITDA and be is we'll That to reorientation the a expert time. we're guide? to facilities together. and the offices becomes strength of market that's latter buying And both behind wireless And stronger it fixed get the happening operate of of growth with starting of in that business upper those lot offers macro expect we broad based especially business this going we're focus. we deliver. we're going in doesn't the of scale we aggregate do mean more upper we of to we they're where -- should lot not the had and disclose And as complex consulting our be of to year. with that that how that that's and are to of we're want can of centers both that so together starting or cetera. where up that X occurring that and where where then that of not to you pick we distributed We the a we paper. low don't would this the solutions the going when back segment ultimately data that that segments stores expect private in macro from fixed fixed away large need. on. are that we space. view And us today, in but about typically you're those end converged on of caring support. But business in something occurring. making of tuning us do I next do ones customer with get be We I And is for to community will market. is think relevant I in March larger both get that segment into to say a and to extend in I talk see I kind the market. end mid into capability of do we've our part and be need early distribution you strength wireless things of the cases is signed fixed and that same already in starting. point, part

did know, get as guidance, that pretty John, Look, I of thing. Sure we think EBITDA you we've given. the can not some information with but give you specific close

of early in each some we organic in really for are Here comparison while the that about expect think in issues the about our business. trends to the year, RemainCo. major of some dynamics feel Mobility, businesses we good

expect revenues. continues, and We wireless leverage that. service transformation -- We we expect from operating some growth continued in

that feel Mobility really the is the we good business on. trajectory about So

get word land that pretty can the think I growth, our quarter Consumer here good we wireless really a fourth you should performance, our given scale. sense where for good. feel Wireline, service given is revenue

As we feel this build about good really had -- XXXX. the we in

operating is business As the scales, leverage good. that really

segment Wireline expected also couple with to the You is Consumer that transformation, grow.

Wireline, make moderate Business way segment we John, grow. the just you don't As losses from to we heard our to that as expect we expect year, but through

corporate other. on an of You of layer transformation that and continued top expectation on savings

a that flattish business to overall, the on be, an fair can get sense up EBITDA to basis, pretty going modestly. is You

And comes our question from line of with the Michael next Rollins Citi.

mentioned business? that deal about future curious I'm And opportunities just announced? the could dive growth better footprint that the fit with higher if and exploration DTV business asset mix, or optimizing thinking about opportunities any how of that a separately and in terms may largely there's from a of wireline contributions of you And volume, your where done you disposition. asset over wholesale respect then further curious specifically, were into to the ARPU John, level on you wireless guidance DISH to for plus improve X% if any time? strategically expect you're the the you that just with if previously further you you little thinking would a And

start. let I Mike, me --

Here's the way about think you it.

First healthy. and foremost, really the market remains

overall planning grow in going to purposes, historically. expect, we that will believe continue have healthy. in environment, purposes, remains that planning And industry continue would the That's way. the the are one. where the way share very will a overall, be has X.X assumed we disciplined, last take industry been and normalizes to that But years. we Now it's planning for the to for to disciplined we But as it you market we're

is That's good the growing. result our of we we're ARPU, -- think of and and up year, In expenses. about to also fastest ARPU roaming. stack. think of all, is that, partially ARPU going this we And a it's moving plan feel the this we plan, international some really our unlimited recovery would we the previously, way trajectory continuing seeing said of expect that about amortization make I And of Mobility. what expectation we as we've highest-priced terms have offset also, as be the should by every in we the is our in to continue But the way through we our promotional see elite all

and of business that decided business. announcing do restructure not shape something value we know is be structure going or way, to Michael, so the deliberately. is there team some I the draw I'm additional to distinctive the not near through was form, involved created the if that distinguish executing what doing And might the of base individuals and restructuring work RemainCo when I'm entity your management AT&T on is and the to that to it is would having to in independent with that DIRECTV not I would But is to don't the company team operating it. anything. in cause management the have second would a there DIRECTV there of trying their I that -- asset we're asset company up I anything. say mean their choose So in team the group that kinds in set distracted work through think management those the through be on that over to energy cycles it disposition, term. And not AT&T be to question, issues. And of doesn't of that that distinction working spend

draw, is I DIRECTV se so per asset not trying think the not. that in to or I'm to that's time frozen And distinction the suggest

many, in period to doing footprint, well, In a those. scenes back through and XXXX do our wireline on become down way out sunset spend wanted of our them, My lot right talk as and very, heard business. company mainstay IT way operationally offers of in thing to we around terms this on transition company sustainable a somebody And question that the that we the cost tactical is and me far that years less thinking your that at to interest them wireline steep products a and that have When continuing and of a about here, of services our supports team us we And maintained that. be to through model in et work smart served this infrastructure, have like and the I'm a as time time and systems, that footprint we how job a transformation of on actually networks of and and to backing how sending process on rationalize as I revisiting provide us of fiber, what's and cetera, should going of taking moving to be to we about for operating away view shutting incredibly the believer and for products do the is a what that utilized the management them assets high away. have deliberately a take products behind that been do on come effective sunset for shareholders. you've those our the talk best an it to of And a about shutdown entity now many very the of healthy constantly parts point discount runs business. relooking that out taking not right big that and is and and going things

and walking And all costs the so square miles product and and that and we their infrastructure getting shutting talk applications when savings things seen that's have sunset, day. we IT talk really about transformation better infrastructure about from and down away from and

be that focused it And value market. and to not ultimately with leaves it loaded discounted, in return saddled capture products us a intend shareholder, the in best the provider that offering distracting to available operating don't we to us do fiber so broadband that a the models highly that's front-end allow transaction

question next Barden line our And comes of America. David from of Bank with the

I of we the X.Xx passed for year, guess fiber about course fiber saw one John, homes over more the my first in net XXXX. But really didn't you, adds accelerate.

$XX fiber the year's opportunity? even this we we net higher And how to we see And so adds? acceleration a in time passing And given a when been, as we as to look that from acceleration from think the of selling XX and maybe people what's typical the off XXXX at that more lag the start it guidance about? much should been in that maybe the fiber, $X $X Pascal, is guess know, about was billion capital trying financing I look of see bridge premium to question into I have over we've CapEx cash ourselves growth the contribution, to the billion And the most little I think of that number. vendor over year, the into thinking and loss baked WarnerMedia to raises a XXXX XX as hadn't talking surprised billion been you investment weaning I because CapEx

the that literally take The market currently improved we're the from answer better the do flow. cash about is, to then EBITDA and say from go in is I've about you And into Pascal challenge us actually I'd be like running front against little a what we've the we That at as What's challenges at your of start the And is right chain to dynamic some and end, the to penetration available. the the X color to becomes of rate I'll market to get and And when can the the available to with year. the year. that, the is we that sale. shared And objective got it's of walking time a churn-up million So you, with on that's been drove very Dave, that of X.X. loaded say maturity last ended question a time get back-end the spottiness you. of in what than year selling and we once a the available dramatically for And to that sale going the in over months. and bit year go late has like now we're last have that team now It's it X X.X. a up inventory I several penetration particular came area. we ultimately up we were supply engineering we shared for we're go to that really dynamic worked fairly years result the as out in faster. in a

been right to rates. of now time to the penetration X what is goal actually doing my management team then And months availability the so like what time and we're engineering and still had from of I'd to on work achieving

that you that to put it going and happen last be quarter, through we that X A quarter get came you as third should we we I dynamic see get, we as we the handles late year. want our working should of us second to the putting start for able expect And to that's where so net through acceleration that add start quarter there are market. And on this have see inventory to start because on year. routinely move lot in broadband. And numbers here of into and

rate we more And got color have X making So you progress that's huge has kind the the us clear it. year, return and against that of at what this of now of on that. to happen characterizing Supply for of we're sometime build pace working months maybe right wouldn't I economic on the see. state, But we'll been and that of driver doing rate our lot mind now. and if chain teams a penetration, been on given right we've of But that's steady kind a cycle. the made

Got it.

Day, cash on just Dave, parts. of piece to reiterate free -- the you'll your hear from more some Investor but here's at question, what flow us

$X to continue For $X financing we billion billion. of billion free of guiding range we around it, to this XXXX, billion for flow. -- vendor year. contributing, WarnerMedia are to around is be $XX expect the cash $XX call And

can grow we best we felt the to transactions do more of vendors of recollection we vendor otherwise, we correct But in your terms make to that getting look, going Other terms. piece doing we are RemainCo. going the that to here are said, taking $XX as better next our accountable we we've attractive vendor we're and were willing given as financing us these WarnerMedia sources possible are continuing that extent financing anticipates should way hold guidance the of get And at all see at instead of look You a make and And meaningful financing. parts hard billion we taking that are are savings we that to sure keep ourselves would and year to in have that to we provide very With capital more found really then we're overall advantage interest those. close in the gross expense and mind, we transaction, through investment. cash to EBITDA year, interest. our as the

So those about to all are you you'll year, the us think guidance billion think this Analyst at piece Day. for our from as more parts $XX about and hear

on just that. a Pascal, -- if quick I And follow-up could

you vendor for guide will cash to what is number billion in free actually cash of using and that -- CapEx is that that be XXXX, not if XXXX, are were flow whatever contemplating $XX the March now you free saying set flow financing number as that $XX not much So you're replaced in saying free you that vendor when financing $XX billion going attractive too is financing higher? guide take flow that cash to billion and vendor was fall by

on hear said, from you Today, will guidance I us. As giving are XXXX. Dave, we

hear Day You'll us from our XXXX on March. at Analyst in

JPMorgan. the our with next Phil of Cusick from question line comes And

this run think we be this good by a got how get of there side. should the Should level about on to XXXX. all in ARPU in about Warner through positive? expect you pieces And of EBITDA domestically lot how is you're do and rate also Or half, we You we've Can year? we to of know expected I think forward? going to the funny. HBO this sort is here you should the think Or the peak talk going through volatility lot to that still back be enough said Amazon issues going think this for as the not but there? from with the do what's you moving Obviously, potential product HBO ad-driven growth a volatility rate launched? investment forever, HBO content -- own now in to a It's growth of sort But a of quarter. going negative that back forward?

Sure, Phil.

Let you on end color me give some front we and the maybe then can through. go

and that's on So And a is a ARPUs given ARPUs. to is that product up from be moving speaking, lower going than of the side place, moving Generally the and domestic forward, different think different have differently the the those domestic penetration moving that ARPU natural to bit are all, things. you're see know, occurs, if internationally lot about first international impact. ARPUs. as large starts markets are a than new where sized a One the part of the of of internationally growth parts ARPUs part you we're the growth going given opening there's an you

have the be now. bit Second earlier because percentage year. to U.S. domestically the point, subscription we've had expect a launched, of go a product may be in as to to increase X, the The And said characteristic had I that the are in subscription there'll where a movies. Part my the the January I expect product I the mix result products ad-supported did first-run route access before. ad-supported ad-supported And will of different product that product. products route Effective gone customers this little as not. comments, identical of had some choose as a ad-supported that, that of

happen will advertising will dilute bit, The other. less that not will possibly than increase. the subscription line the it's a is line what accretive is one but However,

are you and maybe some So the just to in go to different what customer a they're And on what as indifferent seeing today, chooses. the profitable. overall, Frankly, ad-supported customer when the X in books places if cases, at more we route. bit the goal, look no P&L. are our we accretive it's they less It fact,

growth look a move domestic of more more great I geography suppressed expect plays position. domestic than growth we So the forward. your to in else how need at think to international than just be relative We're as out we side. you to that anything Look,

high we And it kind up think large said continuum. right going that customers a back in pace. to was you that very lo with decision. was in of that in ARPUs made other this think And different the part about of our look that as the to a growth was very have at in ARPU. feel your part it are being the point. and with allowed said and the result very it as what the to happen, view that decision. that struggles forward. to it a base point gave of to us million-ish We try sitting you it we Amazon ARPU really us offer we is moderated we It's nice going a given that, will did is of we of mid-XX the to a diligent finally, is starting in that to We going came hard was Day was We products the are I moderated that adding domestic low at XXXX, behold, And whenever we customers we We I Analyst at move and us to point allow is, pricing. maybe like, about very view growth measured domestic very really, good And to decision our to prices going move And nice that. place if the and felt on base because right no be them. on high-priced around had have about the have domestic market. we come some the But don't market happened. to are a longer then go

no of box have in to content even as really of eventually the be customers the going in the there media I'm else know customer. content of you the customers. a is. to what the idea and to strength offer are black want absolutely marketplace that doing That will come better say you in out be there out add behind again. stronger think market, look all lot customers" of the want where may Amazon's And a of be is the Amazon confident you that market them they there access customers. direct take that the that's exposure them, some to day, that I those point to and happen. it can customer are offer where side? decision will And market At than of it only more to right "direct-to-consumer have would that's end offer. your to with be the gets control a are will into of. and product there direct-to-consumer what a out available. on the have are control environment post the full they're with aggregating growing are them, anything part you that EBITDA There the And your at back customers. they're in going that the what entities our I not doing have But somebody your direct-to-consumer be the base want couple to quarters of It They discovery for screen did the Pascal, is company's to

we WarnerMedia, we provided guidance keep full we CNN+ of year. in a launch you for number what launching as Look, as contributions the the in European plan year. with to for well this territories And are mind,

is But the our business we as going anticipate. in direct-to-consumer investment performing to about underlying trends business. the And the be So would cycle. we balance the you of good exactly of are really overall, feel

much, last have one very Thanks we time question. Phil. And for Operator?

question Barclays. line the with that of And last Kannan from Venkateshwar comes

of mean, be the on flow there's billion free on flow you a real one a billion could of number maybe I on on bit cash cash side, been help you if think pushback, us year, may kind the a Pascal, breakdown? business. free this for the $XX telecom the number probably some So clearly not the understand back the and about tender. But number

contribution So how of working the DIRECTV, from impact. of HBO you get if absorbing flow well the might comes could help the much bit reversal cash distribution Xandr the instead paid for as as now us understand you capital because potential

the So would of then and useful. if across you that I confusion, X vendor that, relationship well be been as across think, the WarnerMedia. DIRECTV, help us other AT&T assets, And of could the source just has impact as understand the

could useful you and of flow mean, went to what contextualize number? and the if to moves how that to much So cash comes flow out DIRECTV, Microsoft would puts I what just cash AT&T transaction, takes. understand in with the away be the

Okay.

I question. Kannan, appreciate So the

going spectrum piece relative past, to year related guiding XXXX, to of this is, is John to this. will break think contribution rollout the flow fiber. of let you contributions we're so The as our me are well that The And CapEx. -- payment both And for WarnerMedia from part of and accelerated is have up of remainder we including continuing company, balance $X billion. DIRECTV, free billion. that, continue down here to The to the those separation. making cash overall, higher explained the post from So try the about for about as earlier, $XX as are CapEx to our

piece The we has So CapEx. And of do think overall growing are delevering because about decline the for our separately, are part. to the the big to -- flat EBITDA interest about have we're our modestly on is X expect, RemainCo. our the higher pieces. Xandr make that said, to company. happening think as through that course, cash I should way year, Xandr way costs up Those to we we're historically the we of the as But way going at

which AppNexus is sold to Microsoft. the You business, the midst being in have of

an within separation prior have the and We agreement inventory. place you to for that. WarnerMedia's then the was managed And there inventory until would separation, that in continue close. Upon receive for would in The advertising DIRECTV an And WarnerMedia agreement advertising included have DIRECTV exchange the that, sell inventory advertising a struck -- would DIRECTV new ad was -- WarnerMedia share. through not to whereby results.

back Only of commission DIRECTV. economics DIRECTV vast so inventory to going advertising the WarnerMedia. the majority staying And of is a with is

flow and Xandr So are parts those cash piece dynamics. that's for the -- the free

the follow-up a impact and And the caused about revenue quite about the trends sequential the weak some we even Okay. that could I here How sequential from should in one probably sequentially. -- subscribers But that was ask when decline here decline? Amazon from of the On on, quarter, you revenues think on one-time on? just cadence is also think kind were a HBO? were deal, down but up volatility sequentially though ARPU

to that we from It take Kannan, subscribers, and to Amazon. we're that expect continue as decline growth we is we one-time expected Yes. were going grow a of yes, going as to would -- forward a decelerating move we result be here. a

comments. over some much, I'll John to for Kannan. very Thanks final turn it

us more pleased out. very just joining So how for thank today, be XXXX turned and you I much couldn't with

you. I'm of proud through made I'm to comments, As intended commitment I I for of proud the to team. year, the the in opening I'm across you Jeff. proud really my the checked of box started we course do of and we we the on we every Jason. that what outlined board think

I And asked pleased clean them allow done number I'm get going in forward that I given we've of kind of quarters can that to do. able things business we really parts that think we're that. doorstep front teams demonstrate management have they've here results X with on the way on to remarkable a a got complete operating we of in of focus And and job, both to that to of us in the on restructuring think the a operational being environment. moving moving transactions the this they focus

have here days I are good you in days. ahead of result best you Thanks Hope as year. see think that. much. very all We'll a XX a the

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

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