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AT&T Sees Percentage Of Wireless Customers On Unlimited Plans To Increase By 10 Points By 2020-end

AT&T Inc. (T) expects that by the end of 2020 the percentage of wireless customers on unlimited plans will increase by 10 points compared to the end of 2019. The company said it remains on track to generate $26 billion or more in free cash flow for full-year 2020 with a full-year dividend payout ratio percentage in the high 50s%.

At the UBS Global TMT Conference, John Stankey, chief executive officer of AT&T, said that the company expects fiber additions of 1 million or more this year on the back of strong broadband demand trends.

Stankey noted that HBO Max is seeing improved traction. AT&T has 12.6 million HBO Max activations, up from 8.6 million as of September 30, and the number of hours of engagement per week has increased 36% in the past 30 days.

Stankey also said he anticipates the company in 2021 will generate free cash flow in the $26 billion range, exclusive of proceeds from potential asset divestitures, and gross capital investment in the $21 billion range.

Stankey also said that he is committed to sustaining the dividend and investing AT&T's capital effectively to manage down the company's debt structure over time.

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