AT&T reiterated its forecast of 3% growth in wireless service revenues and 7% growth in broadband revenues in 2024, despite a fall of 0.4% in group revenues in the first quarter of 2024 to 30 billion US dollars (even with a favourable impact from foreign exchange rates in Mexico). The US telco blamed the fall on lower "mobility equipment" revenues and lower business wireline revenues.
AT&T also reiterated that it plans to make capital investments of between 21 billion and 22 billion dollars in 2024, down from 23.6 billion in 2023. However, the 2023 figure included 5.7 billion of cash payments for vendor financing (debt repayments).
"We continue to invest in key growth areas, given the compelling returns on these investments," said Pascal Desroches, CFO of AT&T. "In mobility, we are focused on modernising our network through our Open RAN initiative. And with fibre, we remain on track to pass 30 million-plus consumer and business locations by the end of 2025....As we've stated before, the better-than-expected returns we're seeing on our fibre investment potentially expands the opportunity to go beyond our initial target by roughly 10 million to 15 million additional locations."
Explaining AT&T's preference for delivering fibre broadband over fixed wireless access (FWA) to residential properties, CEO John Stankey added: "Wireless networks aren't particularly the best place to take the single-family home that streams hours and hours of video a day and try to serve them with a kind of $50 a month product or service." Source: AT&T collateral
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