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AT&T Expects Adj. EPS Growing At CAGR In Mid-single Digit Range

AT&T (T) said it continues to anticipate that its pending WarnerMedia-Discovery transaction will close by mid-2022. After close of that transaction and on a pro-forma basis, AT&T expects annual revenues to grow at a low single digits CAGR from 2022 to 2024 with annual adjusted EBITDA and adjusted earnings per share growing at a CAGR in the mid-single digit range.

The company anticipates annual dividends paid of $8 billion to $9 billion, reflecting a payout ratio of 40% to 43% on projected free cash flow of $20 billion plus in 2023.

AT&T continues to successfully execute in its market focus areas of 5G, fiber and HBO Max.

With respect to its fiber initiatives, the company remains confident in its ability to achieve its adjusted end-of-year incrementa customer locations passed target in the 2.5 million range.

As previously noted, AT&T has experienced some disruption in its supply chain. However, at this juncture the company believes the issue has been addressed and remains comfortable in its ability to achieve its long-term guidance for 30 million locations by the end of 2025.

AT&T also continues to experience healthy demand for HBO Max in both domestic and international markets.

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