AT&T Shines in Q4 2024 with Strong Wireless and Fiber Growth
AT&T has reported a strong finish to 2024, with impressive wireless and fiber growth, solidifying its position as a leader in the US communications market. In its latest conference call, AT&T's CEO, John Stankey, highlighted the company's achievements, including full-year results that meet or exceed all consolidated financial guidance provided at the beginning of the year.
Stankey expressed his condolences to those affected by the devastating wildfires in Southern California and praised the company's teams for their dedication to keeping customers connected during this critical period. He also noted the importance of connection, emphasizing that it has become increasingly apparent in moments like these.
In the Mobility segment, AT&T delivered 1.7 million postpaid phone net additions with service revenue growth of 3.5%, further solidifying its position as a leader in wireless communications. The company expects to lead the industry in postpaid phone churn for the 14th time in the last 16 quarters and to lead on an annual basis for the fourth straight year, demonstrating its winning run in wireless.
On the fiber front, AT&T continued to add value by adding 1 million or more subscribers for a remarkable 7 consecutive years. The company's investment in 5G and fiber has fueled sustained growth, with Ookla naming AT&T Fiber America's fastest Internet with the most reliable speeds just last week.
Stankey emphasized that the results of these efforts are evident in margin expansion and free cash flow growth delivered in 2024, which the company expects to continue. AT&T's deliberate and balanced approach to capital allocation has put it on a strong foundation to deliver attractive returns for years to come.
The company's investment in 5G and fiber has been substantial, with about $22 billion in capital investment last year, focusing on building the largest, highest capacity, lowest marginal cost converged broadband network in the country. This differentiated approach will provide long-term benefits to AT&T and its customers, businesses, and communities.
In 2025, AT&T plans to focus on executing against priorities laid out at its Analyst and Investor Day, starting with offering an elevated customer experience and growing 5G and fiber subscribers by providing a compelling opportunity to enjoy both services from one provider. The company aims to grow its business the right way, gaining profitable customers and operating more efficiently.
AT&T has established a new $3 billion plus run rate cost savings target that runs through the end of 2027, with plans to make progress on this goal by integrating AI throughout its operations in 2025. The company's commitment to innovation, customer-centricity, and efficient operations positions it for long-term success.
In conclusion, AT&T's Q4 2024 performance demonstrates its continued leadership in wireless and fiber communications, underscoring the importance of connection in today's world and the company's dedication to delivering attractive returns through strategic capital allocation and innovation."
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