logo
Plus   Neg
Share
Email

AT&T To Retire $4 Bln Of Common Stock

AT&T said it will retire $4 billion of its common stock. The two accelerated share repurchase ASRs are expected to bring total common shares retired in 2020 to more than 250 million through April.

The company chief financial officer John Stephens told an investors conference that the recent addition of preferred equity to its capital structure has been well received. AT&T will also continue to retire debt with the goal of a net debt-to-adjusted EBITDA ratio in the 2.0x to 2.25x range by the end of 2022.

Stephens briefly discussed AT&T's reaction to the coronavirus. He said the company is focused on its employees and customers and has taken precautions to help protect their health and safety.

He also said the company is applying lessons learned from network disaster recovery efforts in coordinating with the authorities on the response to the virus.

Stephens said that while he can't speak on behalf of any specific supplier, the company hasn't seen a significant impact in its supply chain at this point.

AT&T expects the successful launch of AT&T TV will drive store traffic in addition to bundling opportunities. HBO Max is also a key part of AT&T's strategy; it will enable the company to pair unique premium video content with wireless, pay TV and broadband.

Stephens stated that he expects bundling opportunities will also increase Unlimited plan adoption, with 5G initially available only on AT&T's upper tier Unlimited plans.

Stephens said the company expects AT&T TV to be an important part of AT&T's portfolio of services in 2020.He also said that AT&T's initial focus for the HBO Max streaming platform will be on the domestic launch and securing uptake among existing HBO customers and then expanding to other customers, including via attractive bundling offers.

Stephens noted that AT&T has a significant opportunity to grow penetration in its fiber footprint, both with consumers and businesses. The company has seen significantly better bundling rates for broadband with AT&T TV.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Pizza Hut's large Original Pan Pizza is now available at locations across the U.S. for $10.99. The fast food chain, a subsidiary of Yum! Brands Inc., said that fans can now get a large Original Pan Pizza with up to three of their favorite toppings, without needing to stretch their wallets. The Original Pan Pizza is a buttery golden-brown color. The U.S. Food and Drug Administration approved the first drug to treat adults and children aged 12 years and older with hypereosinophilic syndrome for six months or longer without another identifiable non-blood related cause of the disease. GlaxoSmithKline's Nucala (mepolizumab) is the first FDA-approved drug in nearly 14 years to treat this group of rare and debilitating blood diseases. Uber has won a legal battle to continue to operate in London, one of its largest markets. The ride-hailing company has been granted an 18-month license to operate in London after overturning the ban on an appeal for the second time. The Westminister Magistrates Court found Uber London Ltd. a "fit and proper" company to run the services in London.
Follow RTT