AT&T: review of its strategy and expectations

  •   16/03/2021 - 08h36
  •   DEHOUI Lionel

As major companies gradually move towards the end of the first quarter of 2021, some are making their 2021 business plans available. AT&T waited until its famous "Analyst & Investor Day" to unveil its 2021 strategy and outlook.

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AT&T: review of its strategy and expectations

The details of its strategy

It was a long wait for AT&T shareholders and investors. They had to wait for the group's "Analyst & Investor Day" to better understand its short and long term strategy.

By 2025, AT&T plans to have 120 to 150 million Max HBO and HBO subscribers worldwide. That's a big jump from the numbers announced in October 2020. Indeed, the company was expecting a level between 75 and 90 million.

In the current year, the company plans to launch HBO Max inside about 60 new markets worldwide. But this does not include the United States.

The launch will begin at the end of the first half of the year in 39 markets in South America and the Caribbean. The other 21 markets involved are in Europe and HBO Max will launch there during the second half of 2021.

Future operations in the US

The company's prospects in the United States remain special. In this country, it plans to also launch an ad-supported version of HBO Max (AVOD). Also, the group plans to increase its footprint in the overall fiber market.

It expects to achieve this with 3 million additional customers within 90 metropolitan areas in the current year. As a result, the company has acquired 80 MHz of C-Band spectrum. This is in line with its spectrum auction strategy. By the end of this year, it plans to deploy 40 MHz of this spectrum.

In addition, AT&T plans to use USD 6 to 8 billion as capital expenditure for the deployment of C-Band spectrum. Most of this will be in the 2022-2024 timeframe.

Fixed outlook

In terms of financial outlook, AT&T has remained true to its previously set targets for 2021. Thus, it still expects its consolidated revenue to grow at a rate of 1%. The company is also targeting stable adjusted EPS compared to last year.

Disclaimer: These forecasts were communicated by the group and are only hypothetical targets.

 

Other AT&T company news

AT&T Inc. has signed a definitive agreement with private equity firm TPG to create a new company. The company will be called "New DIRECTV".

In U.S. cities, it will operate and own the company's video business. These are primarily the U-verse video services, DIRECTV and AT&T TV.

This deal involves an estimated enterprise value of $16.25 billion in favor of the company. It should be recalled that the DIRECTV buyout deal had taken place in 2014 and cost $67 billion, including debt. AT&T will own 70% of the common stock and TPG will own 30% at the end of the deal.

Also, according to the terms of the deal, the new company will be jointly run by a team consisting of 2 representatives from TPG and 2 from AT&T. This board of directors will be completed by Bill Morrow as CEO.