AT&T (T) 24 Jul 242024 Q2 Earnings call transcript

Thank you for standing by. Welcome to AT&T's Second Quarter 2024 Earnings Call. [Operator Instructions]. And as a reminder, this conference is being recorded. I would now like to turn the conference call over to your host, Brett Feldman, Senior Vice President of Finance and Investor Relations. ahead. go Please

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

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

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

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

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

way you Thank I year, and wireless the Brett. our believe grow quarter you, . by to subscribers. are, we broadband right we we already appreciate team efficiently the joining through adding as call. second solid to results halfway high-value Hard delivered and are continue but the

Our year strong the X what our built the has foundation years. of on past start accomplished over the team is to

this strengths, provider repositioned XG As the now leading fiber a of we're us of path becoming clear services. puts hard a and this result to work, connectivity converged our around on

through In will not delivered postpaid I'd our and year's how phone strategy Since despite of customers. like consistent team's go some pace growing net of we adds time normalization. quarter ongoing Pascal us in highlighting last quarter to our just driving of is in investment-led wireless the first XXX,XXX we're mobility, half the execution And put during the ahead second the year. results. spend detail, modestly market This XXX,XXX

XXX growth driven by in X% service margin by X% expansion. than second basis grew the of than quarter, Our EBITDA more points mobility service revenue and more in

purchasing growth we a achieved the activity half in results devices positions mobility half of center play we run. by our and driven first we seasonal The year, of and the higher new availability do. consistent by the that cycles. well for customer when the delivering the business activity to continue We're features, us we of It's back efficient expect winning keeping levels everything promotional

added wireline we and Fiber consecutive Wireline, early customers Internet by Once growing about fourth both as Consumer subscribers AT&T during our is AT&T success in second as Air. leverage transition consistent story with profitability by quarter. broadband again, the business more and revenues for legacy EBITDA broadband operating than the X% driven In quarter growth improved consumer from delivered approximately was the driven in advanced growth networks growth This XX% infrastructure. to and fiber we

year transition full data portions our to of business majority some continue to guidance. consistent I customers services, While voice legacy across growth being in putting expect on this track and business. XG our as our driving our and of significant deliver execution large pressured off investment on the and are still durable us is performance fiber financial

converged service. fiber XG purchase in The to consumers We driven business. of as are more each growth being and within as solid driving broadband durable our in a than believe together increasingly success and business trends is by execution fiber versa mobility prefer the and vice mobility individual the

also as nearly every of AT&T provider. example, households their today, For AT&T X fiber out XX wireless choose

As XXX a about than basis is points of postpaid our within the national fiber our AT&T phone result, subscribers share average. higher footprint

fiber based that to this considerably A for reason data. wireless mobile we faster and business, to fiber the sell networks anticipated our than we operate achieve performance on is faster do In continue our available not our publicly customers. milestones penetration providers to than ability key strong fiber key

fiber share and that we're scale. in to penetration converged reach networks point broadband Additionally, owning service XG benefit is customers drive our and key through broadband channels. mobility is true ability the and our higher of to substantial both new through able distribution at The mobile proven operating here both

time, both achieve stand-alone either greater expect be and mobility businesses this operations. that as invested expected in Over would drive returns on our we broadband to capital to

While opportunities to our This through the outside of began convergence our fiber expand our the joint of other availability includes venture with our owned we access fiber AT&T offers and attractive scaling strategy see with converged on open fiber arrangements also GigaPower of of commercial footprint, a it. capital-light continued and focus providers networks.

customers. accomplish strategy continued enable focus over Ultimately, aligns We both Fiber, momentum with in and significant closely X encouraged growth to as us We of our a long still with see we last a will of and our strategy, expansion have durable, fiber way. outside I together. AT&T the with this it, runway expect growth and a XG to and convergence efficient in execute drive footprint lot primary but the am growing converged sustainable our by years, of

More I competitive to and profitably. positioning our to more distance organically more importantly, with respect like between us the our set customers address

capital role largest our in U.S. in Our AT&T infrastructure and commitment XXXX. investment-led pivotal strategy the a connectivity made success has to investor since the our played

In our investment, leverage ongoing continue higher to combination growing net our a due flow. reduce EBITDA debt we addition of to and network to free cash

half with remain in to us returns. We in enhanced as to target of adjusted meet and to to net flexibility of as trends investment on next growth should X.Xx shareholder in support greater year. expect EBITDA range our financial provide pace well the the debt This these continue sustained first

about Pascal? of constant discussing we've to to for what what and this consistent excited remains our belaboring going number performance We're AT&T. I'm a that and it for of now direction our been over avoid means Pascal. And all future quarters given turn the

morning, Thank you, everyone. and good John,

start on X. quarter Let's Slide summary second financial reviewing by our

with wireless were line revenues wireline business equipment decline results revenue low-margin down and higher-margin expectations, fiber mobility revenues in slightly in service revenues growth with our as offset in quarter and Second revenues. the service

by X.X% and offset we continued up EBITDA to partially the our which full business EBITDA consumer declines than total drove the mobility, grew year. in EBITDA quarter for In Mexico half, X.X%, expect growth range the in Adjusted first more continue wireline adjusted XX% in quarter in adjusted growth as wireline. X% in collectively for was were of the revenue the

quarter. to EPS compared in earlier the XQ $X.XX from $X.XX about was quarter EPS included Consistent of this the discussed headwinds we year year. ago items Adjusted the aggregated X $X.XX with

the in $X.XX adjusted investment. sustained This the remain range full for generated year-over-year. For EBITDA, our in of $X.XX. EPS conversion EBITDA of adjusted of quarter up cash billion, of year, into result flow lower flow $X.X We to $XXX growth and expectations cash million free second is capital improved the free nearly

Capital year, for with compared year. for investments back result million $XX up prior prior spending We $XX as for billion a Capital the year, the modernization. were remain capital investment of was on half year range the the primarily billion network $X.X we financing. billion, $XXX billion $X in billion to higher down in the expenditures for ramp as wireless lower to track payments compared approximately to the quarter our the vendor $X.X of

The last quarter billion second relative from quarter. $X.X to also included lower securitization net year's impact of

at operating results look X. mobility our let's on Slide Now

to we the basis by XXX,XXX from For a phone This XXX,XXX was in delivered decline ago. quarter, postpaid X a churn X.XX%. improvement net point up year driven adds,

strategy. X.X% driven Postpaid balanced ARPU largely legacy higher by strong grew our plan. on mobility by execution driven year-over-year, service We go-to-market X.X% $XX.XX phone by up revenues ARPU was and

service with down was revenues of year. rate by a X.X%, slightly postpaid expected, which X.X% upgrade As growth revenue equipment last was from partially lower offset

our modest to continue of year-over-year X% we converted postpaid billion service XX% year, range. or we over X.X% the growth EBITDA. growth ARPU growth EBITDA million by revenue $X.X For phone more into in as service mobility expect and of the grew $XX revenue

we During half the X.X% EBITDA to of end mobility the the mid-single-digit year. first higher EBITDA XXXX, and in the continue range for grew growth of expect mobility full

in back In his higher particular, marketing half consistent activity John third outlook quarter anticipate spend levels compared remarks, in As we the trends. with mobility during last noted to the higher anticipates our seasonal year.

XQ while from benefits on back greater dynamic XQ. mobility financial well believe a is through announced Based see and our our the subscriber wireless positioned versus on of in market to half to our half expect business we more also the the achieving growth in pricing strong EBITDA first targets. capitalize our year, actions We

let's Consumer on to Slide Now move Wireline X.

growth added AT&T quarter. positive returns. Where has yielded by quarter. trend consecutive win Our subscribers to the fourth in once was fiber, consistently fiber subscriber expect gains, and Consumer continue. we the we broadband broadband strong led net of we quarter total in in again is the XXX,XXX Wireline Overall, this added XX,XXX This have growth we Fiber which we subscribers and

new drivers able at the which given variability primary Our largest net quarter we are the which to adds net fluctuate. add previously inventory service, variable into shared. pace put can that with are of X serve fiber as consistent AT&T locations quarterly is any we're XQ These the in Fiber we've

stable. fairly remained have which seasonality. dynamics finally, market broadband overall Second, And typical

a in adds to relative locations half the fiber quarter. fiber drivers consumer by favorable end now typically the We of the in to locations track seasonality million plus primary And remain XX the with has expect quarterly net the these remain trends as third Fiber reminder, passed back XXXX. and quarter million and second the of business AT&T pass of nearly to $XX We've on year.

the seeing As investments million fiber potentially to roughly targets build locations. on go returns beyond better-than-expected our XX before, opportunity we by the initial million expands our additional we're stated XX to

infrastructure. build to and similar parameters building regulatory that a assumes environment This remains attractive

legacy and copper-based the parts our sales to are last AT&T success year encouraged in connections with onto AT&T Internet also wireless in of We next XXX,XXX total subscribers of this are with of markets that consumer in proactively service. We by XXX now quarter early customers recur Air Internet Air quarter. fixed not third nearly expected have migrating in performance Internet

see to I'd million the note low-margin in its trend venture. XQ joint less in this to is improving revenues results $XXX contributed year-on-year comparisons On to average, XQ business prior deconsolidating as operations include EBITDA into XQ ease. than wireline business pressure X some of revenues. month that Also, before from cybersecurity in business quarterly in our that about So like likely

point key outlook line performing Business is in provided quarter. the that The last is with we Wireline

still business in range. So year, full the we mid-teens for EBITDA declines expect wireline the

connections. EBITDA legacy and million in continue includes While likely growth year, present business near-term total on our XG wireline voice which X of attractive trends sustained more This Solutions. for in are opportunities the has Business revenues the to FirstNet, to growth declines now weigh expansion than remainder in fiber

products about which excited the have we and Dynamic business, Internet Defense. with potential we launched growth emerging nationwide AT&T we're like Similarly, airport

move strategy. for on allocation update an our to Now capital XX let's Slide

deliberate. to approach and consistent down successfully shareholders. in to paying delivering customers, converged to debt services allocation more capital with value balancing Our and efficient returning growth remains We're investments network long-term

our by net debt target June, in And focused of half range EBITDA the achieving we're XXXX. our have first remain below steady deleveraging end reduced about of on X.Xx to net We $X the X.Xx. the debt and progress year-to-date. adjusted in At making billion on was

We we near-term continue cash debt to with maturities. quarter, address long-term repaid $X.X maturities of this hand, and on billion

Looking position very forward, with we our manageable are a than more maturities of fixed with XX% long-term in a rate and debt great of are average our X.X%. weighted debt

by and the to supplier paying direct debt, vendor quarter. reduced down financing addition In million first $XXX we versus obligations about

the of securitization impact cash. second of we're quarter highlight These efforts a free use net from million $XXX was delivering. quality Additionally, facilities cash improving flow the

XXXX decline distributions to at billion expect and net vendor quarter of quarter billion ratability the We year. direct and by expect of in our about half a lower year-over-year time. were first cash expense in about distributions balance or cash similar improve and We the continue XX% $XXX a to on should million, flow reducing flow we continue to financing free in rate to aggregate $X.X and continue $X.X the the our to annually. cash basis, generated DIRECTV over interest supplier DIRECTV which of

up Free of cash to goal of consistent free the driving with $X.X cash is flow more year, was billion half first compared ratable which our last flow.

half of second year. to $X expect the higher taxes compared cash second we of billion the half the to year, into last Looking be

network related third also expect our to transformation. wireless We quarter incur in the million of to a $XXX payment onetime

ready on billion $XX Overall, the flow presentation. to our free the full To team's all cash the our deliver year on of now year, range. guidance deliver half with pace performance $XX pleased in our close, Brett, billion We're full we're Q&A. our I'm that's on pace very financial to first and the on we're guidance. for in year to of

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

will Our the Hodulik UBS. line John of from first come question of

could. Thanks, Great. guys. Couple I if

in of made about obviously, of typical talked mean, seasonality? half the new just you John, there's And you second First, upgrade function sort a rates levels the lot in higher wireless. a concern of are with that activity about iPhone. Are in That's comments the I so, and for that And does initiative? that new competition levels been seeing you sort upgrade expecting a churn sort what of one. If we've sort overall number the of does mean a in space. of mean? of what the profitability

And relationships, then number that color GigaPower you can about just relationship and the gaming us to had potential partnership relates you open give more room in or comments two, third-party is some doing how access on any terms you anyone of rollout power, And other open uptake. then, . of to opportunity and for with relationships providers? could that big be? is how customer talking And else? there these access Are

our their and first start respond ensuring by on try business accounts what that to we customer happens be to been strategy focused think out with understand that important happens that going set saying is to to your I forward first, do going to to going we And things. I'd factor it's on decide at forward, the of a So how ought we keep question, focus think market. how what to the be whatever up do go to wants customers and to whatever we've of

And deal that to is with company be positioned seasonality. as There a way. I think we'll either

X And occurs we able it First we've a effect into out a I I as there's market. cycle in way bit X coming you that new in suppression or typically a cycle expected a to both And our a be increase to continue. to providers, going with adjust and of month device guidance get whichever talk heard we're an is that to know, of there's to occurs the position Pascal all, acceleration before when little go think handset then that that, they from as you about good and goes. of

consistent have this accounts think looked about at have at I notes that mature that you the the dynamic, have reality looking handsets and discrete about I've sizing directionally start cycles recently been their in at some we when thinking written and times. that of that particular they're different that

how customer an You an we in build base have don't all typically entire same the cycle at least upgrade time. to at account, that gets our

And there's to it. respond happen I make history able with deal in little going or bit another. like kind understand it. X about of if we're a that pretty to good devices, customer going features to to and So at But we're feel the meaningful the that We're we're way look to new decides it. in shape

going Now us none whether not or come more something up. compelling this in there's cycle, frankly of know to exactly what's

been doesn't into feature tell We X in to have it I time at seen do is right months. to world going them other points. seen. but doesn't somebody this have unlock or some and them Typically, have to changing will cycles that remains couple but mean last get ultimately reference these the me say devices bring point. customers them, that take X ecosystem them AI suggests be for haven't cause some forward, to key handset enhancements that the the it's of to There come immediately anything over

say I per and out there's AI ways that can you ways that. AI se. that browsers already seeing things implemented would mean necessarily without experience search we're having of lot also change in I to that hardware is into like and a

if I We've go through cycles of to we'll add end it front and through the Pascal, little anything and we'll don't and think later. do to before, want down that that? and little I those bit there's how then slows it a So we'll spike with and comfortable you know start fine. been it the to bit watch get a adopt customers cycle at

you our are mobility, When as as would at look company, we a I year X the overall gave. well just performance, that through the John, we guidance halfway year running head of full add thing. the

I And so well feel whatever it. positioned is, environment incredibly we like are for the

you'd I think On question and plan product about and -- kind good to this, are at investment, that conversation. on the like. owed and of the about around out your to into data question. session, to insight we at how and insight did to I I opportunity I consider said probably that And spend expect you bit cycle answer time to penetrating And investment XX how data getting getting GigaPower, of I where be understand tell kind transparency turning And we're with defer of would what the your when we going we we to up, right performing. reasonable will told little to be to markets I'm needed put point enough I looking that go it, you Communacopia. you, started a have benchmark And there I'll the of that community through my I we forward a months I perform. we I'm that and giving the

X pick people seem is industry, to the opportunity understand in And shared and fiber variety the as convergence of effectiveness I have United sell capabilities and in have I around my is, together, that its different its models. around I'm we how the just to back with other We partner pockets see occurring we things to belief with of that I a think remarks I on made. it's can what And to in the we a products different I then both go of move And that's think formula maybe States. one. those noticed lot up, a being grow number profitably they

do. fixed the we and across this broadly would And acknowledged footprint. like things as you regard. bets One, selling we're done such my to so as, I being think we in And wireless press we've that in are as expect, I'd not confident pretty area,

if because assets, use others GigaPower, we with scale. bit and it view as get a we competitive GigaPower relationship that wants services make to wireless back means jointly office fixed we Two, to dynamic the positioning with that for that to and their entity can did AT&T where of a our work, who's already a products somebody and built available I use wholesale than that trying different partners looks and market our as helpful has somebody a to our a that So infrastructure being very help some. structure works little think we GigaPower

and and active So the do I to opportunity us between to do as and we're X race everybody see continue this distance we we we're else. more, forward, that convergence. space, further It's to move ourselves and for runway should there that expect in do going tools you and to of put

Our next . Stanley. Simon of question comes from Flannery Morgan

ACP. far, think we if you mentioning reach what back just coming in so managed without comment far quarter? expect And third to update could then you you've us fiber. what an the I seen I get to about this wonder on give and in the do

about expect or XX locations us years what times of map evaluation we and whatever million new next understand You've XX, process? to terms cetera? where X in for think the the flows are giving pretty near talked should of a And you CapEx, you're that on through to kind few a you how almost XX that et that. at us I Help

quarter that continue last you, think to being saw characterize on it. we quarter, you that Simon. didn't no to would we reason indicated happen. it able see be material and and We On back in through as will to significant, fact, is, ACP, probably We happening our at this. commitments I I'd we and or working before deliver even be effective maybe to the

bit a broadband There's the or or an not the there a other of way X the on suppressed down of fixed been ACP has continuing little We quarter. effect, be reason through this moves to is are bit most a them. reasons we're sole little It's bit. effect

we But of because it. who customers, going through are a second vast we most we customers Seasonally, impact feel our that a fine because had majority we the they're adjustments right, and process, know discount, these getting importantly, down quarter of transition made know be the bit. little a tends to But through of about bit were some are, that that. an

gross pleased proud churn impacts look if pretty from performed need I'm net this you had that think It we at it the our way use adds and with we with or who where were prepaid good we've I other, were quarter. came but it, and I the and still with demonstrated quality space, and business accommodated some think where had with ACP we service in how that we adds customers to them. through X associated and

hanging transitional still promotions. So a call will what there some people we on got of out couple I

impacts the been I there'll our shrink following a of all guidance expect calculated thought bit expectations to all that we be. we some promotions. They're in those we the giving what be transitional consistent little of as you. going that They're with are have

we've hadn't We we to this moving and and the impacts on well, customer this wish growth. but I at to go through it our did, with So base. handled think juncture through do had other I largely good we're

that terms of we'll been that very our we clear first as are, of adjusted we've debt to next of an kind net update this allocation on ratio approach In year. expect the strategy in X.Xx half we moving for need and EBITDA would shocks the you next I this. we give of capital year, here in don't the be you'll in our forward, there's as guidance normal of end start as think through cycle year terms give I we any what going to to you where go toward get

and want continue that want same. X. generation first our that we our We my individuals those to and to what to build. of chair to and company capability good, has sure commitments our invest at business. later is make the bondholders Then and business the and That's are to to we'll the and we leave that confident that work strong, Our a we that we of sits this remain want to grow a in sustainable going continue next dividend, way course, company make to that feel sure would have can proud be can I the a about whoever where franchise priorities healthy maintain I top go, a that of franchise say to that and the kind foremost,

as very about we'll spending I looking as year. now. deliberate that. deliberate being very right And next multiple scenarios. We're we'll We're cycles some time to about you get it beyond But on we lot The spending think at is optionality of go know, have that into be it. a Board

I I some continue in that. right around in think level you'll business also at but optionality think employ we'll see return the to growth way. invest we this to I have believe some formula shareholders. how in approach And to we to change us our

Our next of question the of Goldman Schneider will from line Sachs. come Jim

Two, may. I if

relative to $XX to to fiber fiber trend the of to from roughly and XXXX? long-term talked passings of in returns expect add the -- seeing on First million, stronger which whether understand about, here? passing or that accelerating you're you you we target actually us pace can $XX of additions pace help buildout side, million how And would

adds Air, that the you wireless And network that Internet to headroom available then imply of in in you accelerate see business secondly, terms And now does materially that in net capacity your it's do how run rate the mentioned quarters? of in coming relative nationally, overall could much adding subscribers? business for fixed

kind box this performance expected that's I that, been and of on both fiber, call organically in And giving passings than now better earlier, and we're I to fixed quarter to the we of we begin the is to way I've that's as a and where what the get we and it, investment process seeing our region occur. the by going would can together us, footprint you said, portfolio as it, time check what XX some overall powerful clear we as say, developed we've some our the, targets, the and market additional characteristic, combination call been this jointly scale to innings. end understand built that of that expect have the have fiber fiber in returns in and when million been really into insight fiber next this our for well with return and you for strengths are that you Simon and these XXXX, on just about early we're Our it's markets started pretty 'XX we wireless doing can into year, the still, I as alluded some frame, that,

We still go. ways a to have

we by clearly, the numbers I you still probably there, headroom a It's extent the out And it's that improve want and the things think the return. of in some fine-tune can play do between innovation, we strongest but bring we begin even to industry, joint progress. that that service lot put innovation we we there. As saw I of great the think, product to the and that's there's these and that in in better

invest move in question, million do going we're to forward and Hence, beyond growth passings. to my comment to moving I to Simon's answer continue Simon's think or my XX

process this that the what give to little into in we get exactly you of answer a latter more bit same the mindset we're around I XXX% is going through that. deliberate. said, that as got sure in where that color all now year, and think probably the that the make I We'll as And right we're number sure I we're make we is we've board pace. part to

I think I John. as in what things you said should that to X go through mind keep that of the is we

which wholesale capital-light of ways through or our we lot in been organic a out whether that's to can returns or I as a there's building because approaches good partnership have partner financial enable there put good lot doing converged are partner of lot people want a do go and a strong have a it. a And think they this, that of of becoming available we ways and arrangements others and doing tools and lot We to are. with build. place There's as offer in about and go can capital of doing straight

says, And that everybody business I into X really we think makes sense. returns way that and we're lot a drives going to do of good that can that and looks take the advantage back of at the all

on continue should you But associated going terms expect you'll an strategy. In Air I change want to that in we're see that. the where we take Internet artifact don't with of rate, you of grow, our rates to a and to in run that's that, are say, and improvements that

executing I that. our being We're out. We're strategy We're business. offering doing but broken in to to than to don't put others. makes articulated And we do we record, bit transition that are sense business. strategy sound a aid how We from different us I've we selective out Internet our the a of again, legacy technology Air helps like the not is that do broadly everywhere new in cost take it where technology it want places

said product. I capacity product means quarter, product business in fallow we is having long X as not confident be And usage or place The that last the years places that we we in sell got and business sell that end it any not, very to doing out it, to it, up doing characteristics. business can it. a we lived right after We're something We're will be in nature the different the into have we've capacity we'll different buy incrementally market. whether customer wants where has invest

how together. has you product ARPU business product products and bundle the serve characteristics has business around characteristics different and The multiple different can

either right And that we the reinvest how employ so up that a makes on primary to in offer it service that the that when we way pick portfolios for our other and can add I for in there nationwide feel profitably a sense and capability it in into or very customer backup we offerings business business. comfortable

honed tuned as to our We're expect still space, distribution the business in in numbers scale I move see that the continue business you'll coming in forward in us and getting further improvement in see the the would you and So market. we segment quarters.

Our line question next of come Bank from will America. David Barden of the of

footprint I opportunity of agrees said, And was as to that I that race race a to more to to something converge statement everyone you maybe wanted market. there's has its AT&T John, go the for maybe think exploit in it's as that's that, it much a that convergence to true back the just which a in possible. not

share you You that your is you've point these take share that be basis should a got data position to market share? simply that fiber. beyond more in the in a a where mentioned support race to that areas economics AT&T there deployed advantage of market advantage unique you've of argument kind would convergence Could XXX

or then second that possibility know course of question how outages, the future . about to And the there breaches. if your go-to-market financials of Is would previous year, a I could, data the of breaches, there's about disclosures network over impacting anything we be, series the events that's data need either been

Dave.

move Look, will more forward more get you time. and over we So as

in customers not good it off look to combined I way the churn things things. and think the lifetime insight that's gave values. because that's the lower you convergence longer right One, I believes just a a I'm don't and a that other tick a to customers customers. I our strategy. going hope know, lot what but Why today, make happier conclude should and we way showed keep couple of with They And it's necessarily of not everybody they have we you good to are fold. at, have money, raised

think about we're positioned on I it uniquely because is that's We're company. well. continue it I to to And pedal the what the think exciting to push this is. it do going thing

and or And take and the market control to of don't play growth constructed to our to tie connections, great just connection. in We somebody else's organic have have part there's us when want destiny. ourselves an that we can organic we growth investment necessarily broadband own a around overall we not allows growth into, is fixed the that whether opportunity share dynamic, of for

demonstrating we're effectively. that we that do can think I And

else the I it's over place going why me I think It's not reordering it's assets. to already And race done I race, to than it's years. really, somebody years. a important is to take or and more a It's who's right, quarter to that's think say to going a going in take if when player it dominant be effective. a this lens. different space place or really in of mean, maybe in a So X wants And about year

I driver behind raise. this customers another think are

with they services to of customers have love more life suppliers relationships them think I have in critical don't their intuitively than to. to

it well. I think relationships a like they works if few trusted to have

for And and over value the to wherever owned ensure that either them whoever goes relationships they the out whoever that the through go or a time, time, whatever operated great so figures connectivity. be somebody customer that and can organic, globe around get give at can aggregation third-party place X that

return the industry in the I best will scale person that's and does gain winning the I best. the that a think best this ultimately believe that And combination.

about want it we of true my going. the we're back to mind we that thinking understand rationale that a this to where and think will over It's year think plans happen. at how north how not fight the behind company, we're that's decade management just development, pricing structure of how to And orienting quarter that's be And after the keeping I team thinking we're where go what about this I we're quarter. think after So next our that's year. needs how about because quarter our we needs race after I year after and product

Look, nobody that of know where there's work I have going more through and actually and had your coworkers second that these all that customers. we instances that am, your question, than question disappointment we've same here I we've disappointed let some to down share my address issues to

about We We done responding reliability. privacy run Now perspective. having this it. care well things we about a the business think said our I in data that, security we've and care right from to how

we're do proud making, our we going changing I'm in lot get necessary, environment, to the we the two, know of been a to it's fronts. and with environment really, the business, difficult. changes environment how threat it an lot comes more in of which of those think we're difficult I'm we've parts. progress probably X we're proud are a And but moving in really making, and is I is incredibly a and dynamic One, things, on operating

threats on because and unfortunately, are geopolitical things are adjust new that. new new putting that on And all they dynamics that are are Some going pressure the to of seeing Good environments ours, have learn companies, and to. some to having like just versus time, a there's learnings to some more kind missteps the base, but of focus on put big a dealing through customer we bit think or issues problem. I is that have this everybody with large others time we from and might little go

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Michael.

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of Bryan Deutsche from Bank. come will question line the Kraft Last of

for for the a has and question a you concerned room Investors on as further the a actions. the just for pricing growing much have while, perhaps that pricing industry over the are as I slowdown volume minimal potential maybe also power industry. can in industry wireless taken

the market as wanted Just to in Do you are on pricing what power? . either relates share issues? concerns to any ask, volumes you these of it seeing these or

fact sound of mean create own to and I of Yes. from all last that's want think the a that in They'll for bit in industry to, to of like continue share we our first forward been business to because we need been moving by more what you to go a makes that's market And little share others. been formula to And fact certainly saw our and broken have aggregate don't our and is, on year, opportunity that's that. fact moving what that and little ultimately that for take to though take growth seeing period performance I it's part that. you. going but time. we're pay half focused moderating our part and winning the you forward. have going also back product. opportunity of Brian, again, the more And . I use part with parcel yes, us a people more better our doing grow. industry, volumes year, the the unique your circumstances we're It's we're volumes a But even features, and of of to ahead think bit would this we've I that's doing talking to customers effective see we seeing allows still record about our I that of a expect think I'm we're moderating the I expectations in guidance

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on think this more demonstrate for issue an been able them able give don't a I been of And do or we've more increases their more customer to is able been increases things we've price price to value We've safe. to to accounts. them

command to forward. room that to do ultimately value, when ARPUs have service. deliver improvement product And to be differentiate continued and the in able We some moving we that

going I'm to everybody Appreciate Brett, thank this for that, morning. their time it. With

repeat you week cycle and things tell in I pretty approach. we're other the my have we're new thing. and and doing it consistent bit a We've a in out, quarter the quarter something week out, manage been and this that to of to executing in in and we the remarks, I of in about get allows and try how around day, month quarter was don't opening That's was better. the our I to the like previous of end As of rinse of get of management I lot feels said repeat out things and here. good a in mean don't been we've a in same which to but objectives than did what X us clearly that issues to at belabor month think to set it, team, little incrementally

in improving time. And company I we and think you're run have And actually seeing to that miles this still is play. happen helpful focus right us I that more for think now. And that over

enjoys thank summer. AT&T, So thank balance you and for I in you for time, hope your of everybody and interest this your the

Operator, right. Thanks, call. All everyone. the can out close you

conference of your panel, we'd today. our in conclude you for Ladies behalf that call and On Have wonderful for call. thank day. does today's a teleconference participation today's gentlemen, to like

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