American multinational conglomerate AT&T Inc. is set to spend some $48 billion until 2023 to boost its fiber and wireless services, the firm said in a report.

  • AT&T said the investment of $24 billion each for 2022 and 2023 will finance the expansion of its fiber internet and 5G wireless services until the next year. The company then expects capital investment to moderate to the $20-billion range starting 2024.
  • AT&T is banking on several tailwinds to spur sustainable returns, with run-rate cost savings seen to reach $6 billion by the end of 2023. It also expects growth to be driven by subscriber growth and the easing of transformation-related costs.
  • The company sees over $8 billion in annual total dividends following the WarnerMedia-Discovery transaction, equivalent to a 40% payout versus the expected 2023 free cash flow in the $20 billion range.
  • The firm expects low-single-digit total revenue growth from the $118.2 billion in 2021, mainly on wireless service and broadband revenues. The adjusted earnings per share are expected between $2.42 to $2.46.

2023 revenue growth is also expected to be at the low single-digits, with adjusted earnings per share between $2.50 to $2.60. Capital investment is in the $24-billion range. T is up 1.29%.