Focus on strategic growth opportunities. Stankey acknowledged the material impact the current economic backdrop has had across multiple industries. He said the subsequent changes in consumer and business behavior have accelerated AT&T’s focus on aligning its business and investments towards key structural trends across several of its end markets. The company’s strategic areas of focus are improving broadband connectivity (fiber, 5G), developing software-based entertainment (HBO Max, AT&T TV) and leveraging WarnerMedia’s legacy of fantastic storytelling to engage consumers and gain insights across multiple distribution points.
Stankey said the company remains focused on its efforts to align its operations to support its strategic objectives while emphasizing customer experience, effectiveness of its engagement efforts and operational efficiency. As part of these efforts,
Simultaneously, the company is working to optimize the returns of business lines that fall outside of its focus areas. Stankey said this process may lead to further monetization of non-core assets in AT&T’s portfolio. At the end of the second quarter,
Network improvements provide the foundation to compete in evolving wireless market. Stankey said that he sees the company as well positioned to compete in a competitive — and evolving — wireless industry. He believes the company’s significant investments over the past few years have contributed to improved network quality and expanded capacity.
HBO Max progress continues with increased engagement. Stankey is pleased with the initial performance of HBO Max, which contributed to an increase in total domestic
Broadband accessibility. Stankey said that the COVID pandemic has further illustrated the need for universal broadband — not just to address the educational needs of America’s students and help charge the economy, but also to create opportunities for entirely new markets. He said that private investment to build broadband networks has been largely successful. However, he believes that strategic collaboration with and investment from the federal government will help provide universal access to broadband.
Confident in resilient businesses and strong cash flows to support financial commitments. Stankey reiterated that
1 GWS OneScore,
2 Free cash flow dividend payout ratio is total dividends paid divided by free cash flow.
3 Excluding commercial paper.
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T’s filings with the
This news release may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company’s website at https://investors.att.com.