DALLAS--(BUSINESS WIRE)--John Stankey, chief executive officer of AT&T Inc.* (NYSE:T), spoke today at the UBS Global TMT Conference where he provided an update to shareholders. He touched on the following areas:

Offerings continue to resonate with consumers across strategic areas of focus. Significant investment in network quality continues to drive momentum in healthy wireless and fiber trends. AT&T’s ability to invest in attractive wireless device pricing to both new and existing customers further supports its acquisition and retention efforts by driving long-term value and reducing churn. Stankey said that AT&T’s network performance, combined with these offers, has increased migration to unlimited plans. Given this trend, he expects that by the end of 2020 the percentage of wireless customers on unlimited plans will increase by 10 points versus the end of 2019. In addition, he noted that the company expects fiber additions of 1 million or more this year on the back of strong broadband demand trends.

HBO Max is seeing improved traction. AT&T has 12.6 million HBO Max activations, up from 8.6 million as of September 30, and the number of hours of engagement per week has increased 36% in the past 30 days. Ultimately, Stankey believes the company’s relentless commitment to customer experience and willingness to invest in its strategic areas of focus should yield improved customer connections and drive positive long-term value creation for shareholders.

Strong cash generation and disciplined capital allocation continue to give AT&T the flexibility to invest in market-based priorities of fiber, 5G and HBO Max.

The company remains on track to generate $26 billion or more in free cash flow for full-year 2020 with a full-year dividend payout ratio percentage in the high 50s%.¹ Stankey also said he anticipates the company in 2021 will generate free cash flow in the $26 billion range¹ (exclusive of proceeds from potential asset divestitures) and gross capital investment in the $21 billion range.² Stankey also said that he is committed to sustaining the dividend and investing AT&T’s capital effectively to manage down the company’s debt structure over time. The company will provide its 2021 financial outlook and capital allocation guidance when it reports its fourth-quarter 2020 results on Wednesday, January 27, 2021.

Business transformation efforts will remain a priority for AT&T. Stankey said that he is pleased with the company’s progress in managing costs and corporate structure and overhead and will continue these efforts. He said a focus on efficiency has resulted in lower distribution costs even as volumes continue to improve and that the COVID-19 pandemic has further accelerated a move to digital customer engagement that was already underway. Stankey also reiterated that AT&T continues to take a deliberate and thorough approach to monetizing non-core strategic assets.

¹ Free cash flow dividend payout ratio is total dividends paid divided by free cash flow. Free cash flow is cash from operating activities minus capital expenditures. Due to high variability and difficulty in predicting items that impact cash from operating activities and capital expenditures, the company is not able to provide a reconciliation between projected free cash flow and the most comparable GAAP metric without unreasonable effort.

²Gross capital investment includes capital expenditures and cash payments for vendor financing and excludes expected FirstNet reimbursements.

*About AT&T

AT&T Inc. (NYSE:T) is a diversified, global leader in telecommunications, media and entertainment, and technology. AT&T Communications provides more than 100 million U.S. consumers with entertainment and communications experiences across TV, mobile and broadband. Plus, it serves high-speed, highly secure connectivity and smart solutions to nearly 3 million business customers. WarnerMedia is a leading media and entertainment company that creates and distributes premium and popular content to global audiences through its consumer brands, including: HBO, HBO Max, Warner Bros., TNT, TBS, truTV, CNN, DC Entertainment, New Line, Cartoon Network, Adult Swim and Turner Classic Movies. Xandr, now part of WarnerMedia, provides marketers with innovative and relevant advertising solutions for consumers around premium video content and digital advertising through its platform. AT&T Latin America provides pay-TV services across 10 countries and territories in Latin America and the Caribbean and wireless services to consumers and businesses in Mexico.

AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc. Additional information is available at about.att.com. © 2020 AT&T Intellectual Property. All rights reserved. AT&T, the Globe logo and other marks are trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

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 Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise.

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.

AT&T Chief Executive Officer John Stankey Updates Shareholders