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AT&T Sees Financial Flexibility In 2021

AT&T Inc. (T) said it expects to have the financial flexibility in 2021 to continue to invest in growth areas, sustain the dividend at current levels and focus on debt reduction.

At the Citi Global TMT West Virtual Conference, John Stephens, senior executive vice president and chief financial officer of AT&T, reiterated that the company expects to generate free cash flow in the $26 billion range, exclusive of proceeds from potential asset divestitures, with gross capital investment in the $21 billion range in 2021.

Stephens also said that the company continues to take a thoughtful and thorough approach to monetizing non-core strategic assets and investing capital effectively. The company has refinanced more than $60 billion of debt at historically low rates and reduced its amount of debt coming due through 2025 by about $30 billion.

In addition, with the introduction of a hybrid distribution model for the Warner Bros. 2021 slate of movies, combined with new distribution deals with Xfinity and Roku, the company anticipates activations of HBO Max will continue to increase.

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