AT&T Inc (T.N.) plans to invest approximately $48 billion by the end of 2023 in its fiber internet and 5G wireless service expansions, the U.S. wireless carrier stated on Friday as it presented its vision for the business following the sale of its media assets.
AT&T has been met with skepticism by shareholders about its costly quest to be a media and entertainment company. It is now working to merge its WarnerMedia unit (DISCA.O ) in a deal that is expected close in the second quarter. The company intends to refocus its core business, which is offering internet and telephone services.
“Now that we have closed the WarnerMedia deal, we are close to the beginning line of a new age for AT&T,” stated John Stankey, AT&T Chief Executive, in a press release. This was before a presentation to analysts on Friday.
Pre-market trading saw AT&T shares rise by more than 3% to $24.09
AT&T stated that it anticipates annual capital investments to be in the $24-billion range this year as well as in 2023. The $20 billion range will be reached in 2024.
The company plans to increase fiber internet access to 30 million homes in the United States, and to expand its 5G network so that it covers more than 200 million people.
AT&T provided financial guidance for the full year on Friday, but it did not include WarnerMedia and Xandr advertising units. AT&T sold Xandr to Microsoft in December.
According to the company, it expects a low single-digit percentage increase in total revenue for 2022, which is unchanged from its previous outlook.
The outlook also included a 2023 outlook. It showed a low single-digit percentage growth rate and adjusted earnings per share of $2.50 to 2.60.
AT&T stated that the company will pay an annual total of just over $8 billion after closing the WarnerMedia/Discovery deal.
The standalone AT&T will generate cash flow in excess of $16 billion this year, and $20 billion in 2023.