Q2 2025 AT&T Inc Earnings Call Transcript
Key Points
- AT&T Inc (T) reported growth in service revenues, adjusted EBITDA, and free cash flow, positioning the company to meet its full-year financial guidance for 2025.
- The company added over 400,000 postpaid phone customers and 243,000 fiber subscribers in the second quarter, indicating strong customer acquisition in its Mobility and broadband segments.
- AT&T Inc (T) plans to accelerate its fiber deployment to a pace of 4 million new locations per year by the end of 2026, aiming to reach approximately 50 million customer locations by 2030.
- The company is benefiting from pro-investment provisions in the One Big Beautiful Bill Act, which supports its network investments and job creation in the US.
- AT&T Inc (T) is making progress in retiring its legacy copper infrastructure, filing to discontinue service across 10% of wire centers in 17 states, which is expected to reduce costs.
- The company experienced a 17-basis-point increase in postpaid phone churn, attributed to customers reaching the end of device financing periods and increased market activity.
- Higher costs of acquiring and retaining subscribers have been noted, impacting the company's cash operating expenses.
- AT&T Inc (T) faces challenges from increased competition in the wireless market, which may affect its ability to expand Mobility margins in the future.
- The company is cautious about potential macroeconomic impacts, including federal government spending cuts and immigration dynamics, which could affect its business segments.
- There is uncertainty regarding the impact of tariffs and other economic factors, which could influence the company's financial performance and strategic decisions.
Good morning, everyone, and welcome to AT&T's second-quarter 2025 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the floor over to your host, Brett Feldman, Senior Vice President-Finance and Investor Relations. Please go ahead.
Thank you and good morning. Welcome to our second-quarter call. I'm Brett Feldman, Head of Investor Relations for AT&T. Joining me on the call today are John Stankey, our Chairman and CEO; and Pascal Desroches, our CFO.
Before we begin, I need to call your attention to our Safe Harbor statement. It says that some of our comments today may be forward-looking. As such, they're subject to risks and uncertainties described in AT&T's SEC filings. Results may differ materially. Additional information as well as our earnings materials are available on our investor relations website.
With that, I will turn the call over to John Stankey. John?
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