AT&T has outlined its plans to achieve more than $18 billion in free cash flow by 2027, with a focus on expanding its 5G and fiber services. The company’s shares rose over 4%, which marked their highest point since May 2021.
As part of this strategy, AT&T aims to double its fiber internet availability and enhance its 5G network which will offer a bundled of discounts for high-speed fiber and wireless services.
The company plans to return over $40 billion to shareholders through dividends and share repurchases over the next three years, while maintaining annual capital investments around $22 billion. CEO John Stankey emphasized the goal of creating the largest and most cost-effective converged broadband network in the U.S.
By 2029, AT&T expects to expand its fiber network to over 50 million locations. In its current ability, its fiber network has passes 28.3 million potential customer locations.
The company’s unlimited wireless plans, which offer increased hotspot data, has contributed to higher-than-expected subscriber growth.
Additionally, AT&T has raised its 2024 earnings forecast to a range of $2.20 to $2.25 per share which is slightly above analysts’ estimates. The company is currently selling its 70% stake in DirecTV to TPG for $7.6 billion, with the deal that is expected to close by mid-2025.
AT&T also plans to phase out its legacy copper network by 2029.
