Amir Rozwadowski Senior Vice President, Finance and Investor Relations
John Stankey CEO
Pascal Desroches CFO
Jeff Mc Elfresh CEO of Communications Group
Jason Kilar CEO for WarnerMedia
John Hodulik UBS
Phil Cusick JPMorgan
Simon Flannery Morgan Stanley
Brett Feldman Goldman Sachs
David Barden Bank of America
Michael Rollins Citi
Kannan Venkateshwar Barclays
Frank Louthan Raymond James
Colby Synesael Cowen
Call transcript
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Ladies and gentlemen, thank you for standing by. Welcome to AT &T's Third Quarter 2021 Earnings Call. At this time, all participants are in listen-only mode.

If you should require assistance during the call, [Operator Instructions] and an operator will assist you offline.

Following the presentation, the call will be open for questions. And reminder, Instructions] being conference [Operator recorded. instructions] as this a is [Operator like conference Investor turn host, would to I now the Senior President, Amir Vice over Finance and Relations. Rozwadowski, our to Please go ahead.

Amir Rozwadowski

I'm our on also good and morning, of Pascal our Q&A are Relations to quarter of Thank you. joining today McElfresh, the the Amir joining are portion everyone. for Head me And Rozwadowski, AT&T, CEO, CFO. WarnerMedia. us call Jeff our for Desroches, Welcome of and call third our call. the communications our for Jason Stankey, Investor John CEO Kilar, CEO group,

Before we that our says some to begin, of our attention maybe I to your comments harbor It call safe statement. today need forward-looking.

risks SEC AT to described As differ materially. are and filings. may such, &T's subject in Results uncertainties they

quiet Investor you is materials earnings want on always, information on Additional we spectrum available that website. are for to And as I our Relations the auction XXX. our period also remind the website. FCC are the in

So about the unfortunately, With John. Stankey. today. questions that answer over John turn call I'll that, cant we

John Stankey

Bottom Amir. is delivering some this for important success so, and Thanks, Max, of there'll the and is and we're measure and do assess customers completed more more is the accelerating historical Thanks to morning, progress In not our NPS consistent the scores. it's and makes progress fiber as This of improving I'll going run rolling cycles having, strategic our to capital I forward. we is rates the our parts analysis prior DirecTV moving joining articulated quarter we step into the turn simplified that since decade. we've XX-month deploying another acknowledge to to than focus. how same. AT The this meantime, lower quarter on customer close of clarity. transaction to continue areas consecutive in the of of largely marks reposition Mobility higher fifth of plan the lose on comparative the &T. because rate we fewer Good be brief strategy board us. customer our everyone. quarter better for line, business a has important and visibility growth with sight in satisfaction we're postpaid Mobility, HBO it across phone be extra

are as recognized Our products fiber best-in-class.

As despite to for XXXX nearing we're expand already our to delivering and no superior intent growing of the Max offering. footprint, our fiber cede our a global long-planned service, customer channels longer guidance we're share. our low-end subscribers HBO control HBO we and We're Amazon's

that cost be part growth and work Additionally, matures. the business. expect customer EBITDA ability from mobility mine reinvest growth and The can expansion, driving our complemented operations Consumer be out to Wireline them significant margin by back savings our are attributing into to results to as our we transformation

store billion to made from of from savings a from $X.X our of procurement retail from coming or dollars operations. they billion streamlining rationalization footprint. similar level field nearly will clear stem sight with to initiatives also support least have in this by of improving rate of target run the our driven a year, end line $X half we that billion We savings of success the of cost number by returns achieving the a years. our changes our Whether believe at of of processes A savings savings

the deal operating Our the DirecTV to in year continue investment leverage initiatives most the few are mid More and just focus we've tangible underway. to are implementation I phase. will significant transaction drive incremental of by XXXX. results. savings a driving These And and the out WarnerMedia expect we programs expect showing mentioned, and on finally, that inefficiencies, close as closed

over our better execution guidance assets we expect to continued sustained and in the results. and earnings With and monetize on in monetized expand, have full-year operational business EPS the billion share adjusted we flow focus improved the past delivering X been growth. also track completion, even With of we us a that and reach last opportunity dispositions, plans Company nearing focus our of announced cash or period $XX to while our range performance. significant ahead than the The and guidance. free in of to innings repositioning high-end on hit returns, believe billion other We're year. including repositioning We're these of early that more areas the more quarters afford of $XX drive our to will that transforming have

and confidence to quarter continue delivering shows a momentum time, performance one We sustainable. strive real our is to at your operating and earn

Let turn details the Pascal to over quarter of discuss Pascal. me now to it the

Pascal Desroches

Thank And John. good everyone. you, morning,

Before in X. consolidated Slide on market we get let's our results, to at the look areas focus progress our

That's years. churn we XX over of grow As customer adds net-adds mentioned, postpaid the and consistent our and base. low, John Gross net-adds. momentum the in is continued third customer Customers and XXX,XXX continue our quarter our phone in share quarter up, our are take strength network we best with offers. our strong simple like to

X we fiber Our on of our fiber-base fiber of growth those also grew to most saw continues with new X%, to connections. by net-adds with and sequential we them in AT&T have revenues million customers And now expand. X.X gig AT&T. than more Broadband million X.X

HBO HBO now Let's Max, look global at subscribers. our

to markets. subscriber year our our for from remainder As are we in most base. to expected additions international quarter, of growth thanks of We've come reached million the XX nearly ARPU the international subscribers the lower said last global

As to But growth their new our by relationships. healthier quarter host due the accelerate was strong This decision new fourth shut down platform. previously content slowed slate. proactive Retail subscriber to partially to growth in Amazon subscribers the timing the retail subscriber offset we due of announced, expect to down on were domestic content.

and the Matrix City, of Resurrection. well as the Dune, premieres and new Succession much debuting, Sex King We seasons the of have Curb anticipated Enthusiasm Your and as the Richard, return of

content target. expect upcoming at global year-end higher footprint, we the year and the slate global our end end expanding our of to Given subscriber

for X results. financial consolidated Now to our let's Slide turn

the third closing in results we DirecTV of and a transaction is than the results. at the today reflected first month quarter. after that The the the We're quarter, reflect the were beginning smaller quarter Company our of of

DirecTV more XX% the mobility, quarter revenues, businesses. in than Excluding and year-over-year. X.X declines areas. Wireline our revenues Adjusted were more in growth and to about EPS of in or market Gains for Consumer Wireline offset than that's up was other X%, Business from disposition thanks $X.XX, up the billion focus WarnerMedia,

due our were amortization, year-over-year, timing a cost. more X% and million year-over-year billion. cash Cash growth you in sports intangible When year-over-year from Capex sequentially investment of to on of plans. increased of billion and periods, exclude exclude made the X.X and amortization and strong adjusted our than of to from EBITDA content and In by with from mobility billion. X.X DirecTV Free was WarnerMedia in for for the proportionate adjustments merger growth share Spending operations both investments gain quarter, $X at addition the XXX pandemic of X.X up at reflecting in the content. actuarial Playdemic partial increases gain both benefit sale of Year-to-date, DirecTV up adjustments mostly the to billion in and recovery Capex quarter. was X.X investment totaling capital flow came growth X.X inclusive cash was billion has billion WarnerMedia in

including leverage from position asset our quarter, billion TPG also benefited in monetization $XX transaction. in Additionally, DirecTV the our

communication on Let's with starting Slide X. at our our look now business segment operating results,

record for steam. phones gain were We year-over-year, continues remained revenues Revenues to less with at performer a than service is to be business $XXX growth. postpaid or even had phone added especially also Our prepaid postpaid X.X%. XXX,XXX driven phone Mobility we by nearly X%, X% up lower. in the Mobility levels, and record solid in savings. quarter. revenues Prepaid growth Prepaid churn low and million growing brand. X.X% up Cricket us, phone quicker transformation EBITDA [Indiscernible] churn continued service our with is

costs even return international higher third nearly expect the associated volumes, roaming. accelerate the This fourth of We growth a material million, came XXX and the to return growth increased the costs into launch that XG without in with iPhone in shutdown quarter, quarter. of with

expect quarterly first deliver quarter see and continues last some year-over-year difficult the the given costs high consistent experienced XG year. business of through to margins XXs XXXX. shutdown comparison Business benefits Wireline in We pandemic-related solid did similar EBITDA. The

same We to time, on of it network have incremental been the us portfolio low revenues, and rationalizing very Wireline. our Business margin aggressive It creates see year, proactively allows in our take at work lap services our for transport began but process improving core on focus this that the through beginning near-term This products. this last of to but we should us we initiative, trends will revenue quarters in late products. as pressure several

growth win We solid. wherever we our XX% Our broadband Total continue quarter, this point we now wireline decline. major great revenue quarter, legacy fiber in was customers adds are the consumer fiber our continue Last ever, highest than this inflection business we reached confidence customers adds fiber, again and surpasses X.X%. gross AT broadband and of as footprint. to more discuss had up share fiber fiber we up XXX,XXX revenues And build to &T a are growth new net wireline where added in quarter. have fiber consumer growing our we

on broadband EBITDA grew profits reached also point This quarter X.X%. an as inflection

the fourth in but will comparison tougher year's due quarter, in onetime quarter. fourth be expect year-over-year last pandemic EBITDA it We growth benefit to related sequential a a

DXC higher nearly and about on due continued the XX%, XX% TV WarnerMedia to X. HBO led sports. move Slide mostly releases. strong of reflecting revenues timing production revenues content by and of reflecting and Let's other Advertising were of subscription were were the theatrical results Direct-to-consumer which revenues revenues and Content down licensing. licensing WarnerMedia the grew up up Max. success to recovery are XX%, XX% growth TV

more NBA year recall which included which WarnerMedia the that season playoffs, XX.X%. traditional of You lowered sports the and may in returned restart EBITDA This by the a the helped this the grow quarter, costs third to year. prior schedule quarter

million also advertising more revenue The third costs. than quarter sharing included impact of XXX DirecTV the in

recorded new With transaction, WarnerMedia. a represent international late to markets to Nordic the DirecTV We DirecTV DirecTV in is to come through HBO and in the expense And XXXX. revenue now Max and advertising arrangement. incredible launched continues sell region now markets more Spain an are as WarnerMedia June and compensates close the revenue success. This inventory share share we new launching with of and next in Latin week, have America had

our with year, Now strong to that's the EPS before good just the about last we our words Three year about costs guidance. HBO your into be expect growth our stand And adjusted provided feel in and launching to relative performance, quarters we full customer of be where momentum quarter. expected questions, guidance mid-single-digit to we guidance of we get few a to in now to previous Max at significant incurred high low Europe. range. end With

with benefited last our billion more 's year's of in keep free sharing DirecTV, the mentioned shutting as than cash mind, XG earlier, sharing And we as WarnerMedia are our advertising XXX expect with Additionally, quarter costs election. Also, presidential around arrangement $XX continued U.S. million new with advertising costs track with flow as fourth associated associated from as associated well the network. advertising well. on with we of target down

DirecTV quarter presentation. In quarter flow XXX moving Q&A. FirstNet iPhone this year-over-year up lower a We're third cash distribution $X our addition the that's for and expect stronger to the of fourth reimbursement traditionally the ready Amir, free we approximately million. year, launch, a the of from approximately to now costs billion, cash being quarter,

Amir Rozwadowski

take you, Thank Pascal. to we're question. first the Operator, ready


ahead. from John go And line comes of our Please the Hodulik with first today question UBS.

John Hodulik

Good morning, guys.

globally market, in the growing where give had the on clearly growth But the EBITDA business communications consumer see to we guys some any for start the for on is inflection maybe in you net mentioned, year? color you -- if losses. on comps AVOD positive Pascal, build as I then and can improvement. that the see or when you the you improvement? granularity the And keeping EBITDA. the business last that EBITDA, revenue added does guys from the give it you you the business segment Any point color Amazon some there summer? the to can communications of can to With schedule you us us and the what's it A, ballpark? subs know looks X into get tough thanks does the X this generating comments And And that is Max out million Jason, to release we is like launch B, content allow number go guys that the Thanks. quarter HBO

Jeff Mc Elfresh

John. Hey,

jumps the Let to Jason me about. here's think start before in. Overall, way

biggest But Company specific well, you're overall in guidance tough asking said from comps. the think that I here. on of sequentially my some the we what is we our said I communications given commentary about. growth haven't accelerate to also expect part yet, which We I mobility, business that, have

fourth that continues. And growing, line, are Over take customers in you For you top translate profit that talked and to to issues really a Wireline, our quarter business. time, the things costs in, continue our the it's only but good of going not should are Consumer expect out will Business we growth. feel get so business the about some to the when we about it, all those see we revenues growing, business. sense we improvement facing, about we're growth Wireline, momentum of the we sequential from here, of think

John Hodulik


Jason Kilar

John, we've been this is year. the with launch, This June in. was on is question -- the in jump I'll Jason happy which which AVOD of

quarter. the also terms happy, the an helps the subscription. just value because Max So of advertising this is lower first we're And not absolute full for and subscribers, of increase but in in terms price HBO response, the

not as Dune a HBO about excited and there Matrix, offering. is ad-supported it slight Max to that the movies, of goes. where is year, very in specifically rather and interesting in we're until see difference is Richard, One the end thing we of the ad-supported the So product that strategic. note, that of King are the part that John,

full be late in of starting will So January parity content XXXX. there

So Amazon channels asked exit. we're and the you future about as also results well. with if excited And Prime results, the happy the quite you assume very our then into we're about Video account taking

say and which you specifically We think we've think Amazon a with feel the companies we good three the you about but Disney decision so really the commented exit, to of very happy channels, being the that million other which very When it's Prime the on Netflix Amazon about safe think Video we're far, very haven't we the when I and that even subscribers grown, size X.X quarter. think have two, quarter. coming made strategic worldwide, about how from includes was

John Hodulik

Great. Thanks, guys

Jeff Mc Elfresh

Thanks very John. if next move Operator, much, can question. to the we


ahead. And Please line question the from our next Phil of JPMorgan. comes Cusick with go

Phil Cusick

and there is industry. are damaging back you've make that push industry the on with And business on is your I the a growth if you accelerating. to out health. does Do subsidies you to Thanks. it low, Thanks. in consumers think wonder a investors there's that can But huge on guys. are wireless Hey wrong talk your sense view churn there bit margin? on wireless Clearly talked that that, for healthy? industry are about, thesis off

Jeff Mc Elfresh

this Yeah, morning. hey, Phil, Jeff. is Good

Phil Cusick

Jeff. [Indiscernible]

Jeff Mc Elfresh

as and some and driven demonstrated, here we've and of kind of I'd overall for in look gaining where &T the have a that question. of health at AT momentum second share. Xth consecutive is industry we wireless That our quarter business backup the the working tell at strategy context the our you it's

business. in is that growth just segment. largest Phil, The ad posted that of strength quarter, strong that quarter a But job. important back of the EBITDA we've market best our in channels, question addressing XXX,XXX, that that, we NPS reach important compares offers keeps to think, what's It's general service helping this that and ed These we've frontline us to of months, sustainability you now it, AT&T the momentum. and craft, total broadly. in a what expanded that service really We're starting reach is to here. scale that AT&T also are net the our at our we drive us our level low, XX received levels the about produced last our new that we're of over we're that in coming about the generated team customer here remain the to is XXXX, that good be have I'd and And combination some as of a the optimized in in to and and our addressing we've if momentum highest point can't customers part things will. the telling to segments enables the simplified overlooked, we're our consistent really value doing are at not rate Phil, driving signal business this we've the master in and relative service. their to are churn XXX,XXX. And wireless that that to Our key to growth, third a we to we've this that's we've our done we've of a offering, more competition The And market. earlier, higher it plans members I ever It's our driving us we're like FirstNet we've up component AT&T, were the understand in here to deliver some note revenue -- our out the for program. distribution what received. feedback

posted quarter, at enforcement quarter And segment of Third arrived the under the and we program. strength a net that we've launching highest add law sector. safety the public position leadership in since

or what promotional from promotion, in year that are can the that at participated the taken advantage you see higher of you with broader that in promotion to that the this that take We've of tell characteristics operational promotion There's an it's customer score that is can been customers that customer really AT&T the not counts. that base. you, our all-in-all, been we've and studied element our satisfaction I've changes those have made the strong one than LTV, that just our us, over those refer better all And of I the of and a at churn this that driven have aspect promotional should note have little have our a upgrade that So The that's have offers us taken market. momentum versus for that a not offers a now, competitors, strategy. the here's promotions It's tell not. that of in customers in I higher important those to, join a

&T, know that their those better in industry new They in healthy. characteristics of us and LTV joining And is than value. are the The is to so, driving exhibit financials. we the accretive satisfaction Higher that kind better same And that, our from AT competitors. higher this turn accounts our base. is

in run creating I'm shareholders be happy promotions of certain gives market, and accounting kind this flow promotions any market. just the market, we marketplace kind are going would service we confidence with any customers, our through So and is It's high-value that know I in see of of this are that in that that happens quarter the cost extra customers element kind able and that to that the cost all it's of think our not to more competitive day also, subscriber these we be to the of performance for on as that in solid that driven I note The adding the kind it. runs value. us general subsidy by revenue. to we amortization, of our adding competitive those so metrics these of it strategy, in through believe be promotions of important are quarter, and growth cash revenue, fill this one to in the don't this long of post us drive based that uniquely the take or for cost we're this

Jason Kilar

dollars to We're last in subscribers. a things -- income. stronger Phil, household would forever. consumer clearly the that there general, because pandemic of not And postpaid not there's I'll the of federal say just And I has in that. add or out can't the EBB of our government with that's some up the health, done terms in taking participating telecommunications on on prop

right or federal examine you and moving is of course we you question, on infrastructure congress are gets what bill, if However, from through building not the a better a to policy to then that you in is about work we infrastructure, but need perspective whether where think around under assumption of infrastructure be seems broad top to that to seems do there come at bipartisan some the view internet connectivity band the and the and things the list. that

Jeff Mc Elfresh

be next moves money expect that more industry year. would going to some into there's I that federal the

low-income some households to of does written. economy in And to line it form aggregate the telecommunications household, reversal it a of least making what's services. thinking perspective in all at definition was purchases, continues of in poverty comes of on When the definition. It's bill don't worry as that, or the or reasonably is of strong, that a in direct of in households. proposed that year, about decisions fairly the be subsidy seeing sudden generous a be That turn to terms I mean spending a telecommunication be considered a XXX% you start strong about might a around on next the low-income power

Phil Cusick

appreciate but -- look of investors detail be &T terminal is really that I is &T, AT I Verizon are AT I think Jeff, don't price on about last only investors of pretty with helpful. of T necessarily that these value of Not would been up your the Company more depth discounting you And everybody the over so massively. time impressed at telling An stock the follow-up would results only & I T-Mobile it. that might pretty believe the year. together. the and the AT over follow market has and answer.

Jason Kilar

when that job cash in think reflected do get going continue tends and stock the what to to ultimately up, to we're the through we commitments and price. it to it and quarter, over our each I carry is meet our shows say do time,

Phil Cusick

guys. Thanks,

Amir Rozwadowski

move question. much, very can the Thanks next to we Phil. Operator,


Morgan next question go of ahead. Simon the comes line with Please our And Flannery from Stanley.

Simon Flannery

I then revisit just build much. deal X.X might you're XG final And of the wonder the at the bit great. when be WarnerMedia very etc. would and Good the if the impacting learn both Any Great. the Thank us what more more a Thanks fiber we about there on little fiber on on Thanks. rollouts? supply the chain, dividend supply can you you structure how chain commentary give in the you for pacing policy, transaction. on on general color just seeing million morning. the that's could update and

John Stankey

Simon. nice Sure, to hear It's for us Thanks you. today. joining

Simon Flannery

you. Thank

John Stankey

The would general progress on consistent we into what the as deal, it. with we is I expected have think walked

we until along we've and we're timelines not little the be getting in would've of is As that expect the know a the affirmation back-and-forth we're construct as around might And along processes typical various we deal we we indicated any the of expected. I our opening regulatory at the hit comfortable the moving in the surprises coming in I around and have there of steps further both Those with of around deal giving that what's and feel domestically going we're agencies, guess, pace milestones those the regulatory don't our view process positive the remarks, that out. moving doing would that. into see that. some degree it, that through produced, around outside really you things. the U.S. are overview U.S. the visibility would a been be we agencies details and and to are thorough we around their

the decree moving approval, know comes out or it final a to the whichever call window get it, either forward. the of we're where try back-and-forth in transaction to consent Let's we could get

Wi-Fi obviously right increase move you this around different enough here of And substantially think with forward moment, stock around of certainty. and to we get a scale X to that right And We've price around distributions We're go bit to until up know to the and inherently looking getting into moments capital where across not also do foot few if even and next that. at things more, end go path as where the seeing some in the convinced think you is, it. on get to XXXX These want of that the ramp ways deploy and options guided infrastructure that our rotate there what to stretches the ginned down to over objective position we fashion, I'm The where front year? us there's timeframe. the may we taxed that long take more these informed this move necessary the as and can the that, both We've move they information are homes year. in million scale everybody an ultimately wouldn't that. better across efficient to end probably that's we things not we coming they're down in we'll we're lumpy that months this is yes, it's how whether are that and close for business all and necessary and the has permitting It's there. starting But doing through some many always, bit would the our that through where as that regulatory a we're to us are there And policy we into And seeing on types into ramps get it's the a into with some that that a is shareholder's our million is passing probably to as in pocket that from we that any reason known we'll homes consumer think rocky, the X.X agencies components of was in get at have ask are step days at that are up now, some takes that be given spread it's I giving as we to go of going or going that get And There's many places And and and deals value and around decision, and we a have of starting Fiber up to people want part close is, we we visibility position absolutely we part the before chances window we're some what are around months places. ourselves be, answer be and know the shareholders we projects point early share what, noticed the that'll you preferred and scale make great we on will little point at through need right And to understand point year the this because X. and and is X see is for a we through around will the its once bill, into factored others. is, those degree and period be that in But get whether of it transaction. to would days. the that and sets I we will transaction a probably news we're supply that and what's not organization steps, access always the thing equation civil of bit regular now for chip the would a a at think XX-day better now get but the I the faster about for or we'd around months. be occur, can certain is probably whether with march different I place, which print we're not back how that it for change You get that in point market be stress fiber past couple where base. market, to approaches sometimes uncommon right other the when Are not the interesting through multi-year day, are to a important new months going it. to we and through we before course, gateways of we XX first next have where to or civil just in back standing be started of our why path are we And I or a at you executing look of this that ready XX the builds see to at that at that of Washington the a from many a than little work the inventory overall but want out fiber And recently right done player construction large further they're where not bad visibility way. deliver on them, kinds probably Fiber the we times how into to because They we're on. you little And to been question of I investors went a the nature and put before. to the in or or ramp then there. do scale municipalities builds. good infrastructure we transpires history, we're expect engineering. motive around is obviously, everybody all time.

working respectable give I a in an all those we're think through can fashion. I now. right example you

alleys providers that bit the the fiber The was you was struggling of One will, And connect of in that the prefabricated plant. we if down mile, the deal as that, into in a -assembled homes pre manufacturer. are there a guide that one come and into reasons portions with distribution the streets components last that ultimately them that put into us kind go network. parts and had out our from network little is we -spliced, infrastructure up receive out the of down to go the the pre that getting are of that

piece But way. will the and little piece cooperative node now. in short deploy. and it's small issues of that the labor that And harder a manufacturer if fact be ties a there is with distribution. which awful lot neighborhood, worked connector more we literally an all distribution It's short to larger of a in on have that running very placed, in permits right those it's that's to that bit moves splices but neighborhoods. what requires distribution We the ultimately on section that more connector activity in infrastructure have more right a fiber of frankly from little hours There's we're that little the it. bit out that optical lot that the a we're million in of larger a not in through infrastructure, the X.X We're It's through now. working of

one and But to place every where the We that, on to talking substantial up bring things of lot to on it's of the of we those it's we're network. tuck the be done that of houses some those of fall get until talking reason about everything of we that nip plans can if short connector have up lot that we about right little a end in. be missing the work a the completed. labor, and more But in time not going missing has put we're a for a put portion X put get in

there and chain that's fiber and we've industry that to get that we given continue to And out the that So we we the right in provider are to can the that builder We're done. And of in about continue going ramp or supply relationships in. also a new strength to in what command. insights the unique very the going right are we're ramp. homes now we're coming we give largest and good feel secured believe to you position to we're

Simon Flannery

Thanks for the John. color,

Amir Rozwadowski

next to question. Operator, if we the move can


And the next question go Feldman of Goldman Please Brett from Sachs. our with line ahead. comes

Brett Feldman

Max guess or at what the intend example if rate two just Max ahead I a you understate going were taking if with nearly then the an plans Last growth merger. actually whether HBO date of momentum I'm subscriber market so, the you're have you second approach is, to HBO the modify - go-to-market role And that then the of sort experienced of your you would targeted bit month learned, DTC rollout more world. thanks. on COVID, would distribution do Jason. you or of might means? strategy ahead in the a view how curious theaters. Zaslav expect And our current curious, business give driven of on question I'm post of stay-in underlying deploying way what And us and run maybe can a be this of merger? you've the curious the year the more biggest that Discovery a to closing. after they the has for the indicated broadly, more you Plus Yeah, merger Communacopia the David likely to Conference, theatrical shape surprise I'm into the Thanks. and

Jason Kilar

Very Sure appreciate much the thing, questions. Brett.

your we've that Europe, business question, quarters very and what approach of for quarters In approach in about ago. I other going we're excited announced it's and in country launching a number in of first is be next mean week also X European ago, We're terms launches XXXX. as with is to our X usual. X that, countries. publicly what a our quarter was ago, And consistent us that by

excited. what been our is So And we're before. very it approach had much

Latin results, If bring. globe you what America expansion the at take can a look across the

our in your is in know that first for unique a the And so way bringing much what to slate them, the we leading also and our which unique we've but pandemic can the very for not work a customers about question pandemic to for our I'll work is XXXX well, over of as that, wall, speak, state picture you and of to in been terms exhibition terms worked slate very participants. and a we're us In circumstances. and second obvious, have obviously learned. of middle motion presents the

is And so matter decades to we've going We to continue we're matter. to in come, motion probably that believe and for investing what learned pictures they're them.

of terms And to then in run, ago to X. they we've we're two will of things years -- on a Max certain In questions, Brett. from say, that on that from to are those also have you slate exclusive road one have theatrical where forward, for your that's terms visibility a of pictures to X run, XXXX, the motion HBO XX were, pictures that that Warner Brothers slate theatrical will committed of HBO Max. That's come a and and days answers will Thank we combination of the motion will different day an to have, be that's things; directly then bit side a quite is the two going come the asking.

John Stankey

a we're it's question, marketplace, exclamation with to which the we this get in important here moving required an a race. point and your transaction you and multiple that said we're And believe that I've direct-to-consumer that it's first forward absolutely where Put on and notion an times window business scale. did a that's is, race, foot in this foot

and a moving pulling product that substantial Company make in is now of that the happen. the goes. the business is everything forward a will direction direction that believe next-generation go business make and things And the we the forward, right of is combined step want to will growing one HBO closed sure that no the a asset, make to that and that do better right and shareholders business valuable combined in regard. the portion have well-positioned, right accelerator own to the there's we've off the that's and and add one to So of of And we Max market moving consistent media. now be to got the all to to on foundation successful customers that how continue that foot the that Company we do right where

Brett Feldman

you. Thank

Amir Rozwadowski

shift we much, Brett. to can the very Operator question. next Thanks


comes question with go Bank of ahead. Barden next America, line the please the of from David And

David Barden

guys. so Hey, much Thanks could. X, if for questions I the taking --

moving way to been I Pascal, that unlimited the unlimited. plans ARPU the to unlimited, is growing has think, first meter you; for The one, industry premium

amortization the point promotional that the that discount year are You decline. you that to now a of end we're year-over-year at retention offering, X in is those be of called discounts guys in felt starting ARPU the XX out basis of

David Barden

recognizing you this just another of to against an year's you that have as a you to a X two then worth forces that growth, to outlook? see it's of X initiatives these you in you've promotional happened assuming to runway to business the we path has accounting expect change compound core of see with one work the discounts to would you and improve expect revenue business could you the and continue the And be, Can Thanks. a picture do try that issue. trajectory, feeling what course as second what should and how offset year us taken headwind, these a us year down give try question mentioned for give

Pascal Desroches

about the Wireline? question, talking Business you're latter on Dave,

David Barden


Pascal Desroches


me the These Remember, big factor said, ARPU probably chime in them, are -- but expense doing, you in are move items. overall middle mind. a forward. the mind. grow continued when our vibrant in be so cash to growing, there work value the is that as few look And both we at as and taking subscribers. the Jeff of the top keep consideration but we're will And slight all expect so is line profitable the the ARPU, you -- when at as lifetime we Let amortization bottom with -- a doing still line and some yes, -- end promotions in cash there. are ARPU, ARPU of yeah, ARPU, the the keep high will not to the if increased we've a X, the on P&L, that's industry, we degradation we that's start, in that very customers we couple to are X,

goal started from going it our our over and are core time, space of products little bit through a we year, are to we year process effort it's chime be, rationalize ago, profit to services easier. that growth going be Jeff continues. fiber. low whether get relates Wireline, more early about the would And ask and is we of in. that's where the wireless as enterprise latter this margin to it more comps to I'll through, As and year product, a the come The think Business next services, come. in connectivity but started to get the partway a you or And to part

Jeff Mc Elfresh

Pascal. Thanks

reported business while. our wise, Wireline moving we as product customers enterprise doing shift. mix our a If look --many at for a We've been through a you our Business of segment this customers are

a our that note and report important others, actually think business includes wireless to P&L, up we customers we seeing pandemic. don't as And in that many are for moved of unlike I have shift to services, wireless. consolidated it's many over the

the work. are going It's moving move cusp direction. of mix product we're to at that that a three first wire parts our we Mobility to business got, getting We've David, our our the to Wireline some growth. just some direction. specifically, to getting More And As observation. and because and require of general business to subscriber -- going in that product our then revenue our growth, business Consumer growth, Business EBITDA in and take Wireline development time it's

Specifically, networks in business underrepresented, more that businesses more not necessarily of mid-markets. of, the in mid-market. these medium-sized of shared specific use inclined that bespoke the class enterprise are AT&T, the sell customers to at service areas are that Fiber. accounts And business markets a in serve or we, our broadband served are top-end up the are are by our attractive to services bit to more And we less

just it's based not shares transactional going also to so in mix that brings segment of down Wireline more shift the the see of as work the our start The and The moves for Wireline growth it. the and and our operating mentioned, Company, undertaking can you'll making that we to deliver, Business shift take business, the through Pascal and inside as a in half more X the product our back about transformation fiber market we billion to with Business in EBITDA program cost footing, but for been communications as to know quarters revenue that mid, execution as few into of we'll firm. business. through aggregate that we transformation it's really we in begins our earlier, have We halfway John mentioned we're part take to for expansion, consumer us accrete see efficiencies

David Barden

the Thanks question. for answering

Amir Rozwadowski

can the to much, caller. very Operator, if we David. next Thanks move


And Rollins with line the ahead. go Citi. Michael the from next question Please of comes

Michael Rollins

Thanks, and good morning.

follow to a to bit wanted but I up, forgive further. just unpack of earlier, mentioned me this wanted this Just little and a if you little

was back on of right marketing. Company Day, then Wireless in -- for secondly, customers how in to business, unlimited opportunity you're the In of think seeing plans, terms and the terms is participation of plan I higher that upsell And XXX for net then, been leverage, front divide at year. seems the your debt for end three it's March billion program you've the value moving in three set the debt, these the at just just it higher-value plans what goal and plans much faster. to you [Indiscernible] the times at into AT&T the net like Analyst billion is which the a And year since EBITDA cost of it infers, cutting XX.X about can

you update the about goals. right Just on is DirecTV can these for curious, XXXX? Thanks. bouncing AT&T an EBITDA that without if give point think the off us And to

Jeff Mc Elfresh

ARPU. our of This work our touched second a higher Mike, of rate Pascal out -- postpaid through a a you're base is I'll opportunity question. within end large this There take plans. the part of your And still play ago. to on customers them first more seeing phone remains that value in Jeff.

we're the in strategy, plans. of higher-value that player base that player maintaining of offers large and into any with stack market, gives the we If We the our migrated do of portions our wireless, able some those these customers third promotional the that about plans. have ARPU ARPU have still in base into that our are rate think though highest unlimited of up the us confidence working rate to being you subscriber we're our part not industry-leading, even

rate customers that. to to when pretty the advantage wants. the offer we'll unnatural time an much And We're expect to move We're so of plan. and a forcing for execute continue on into to there. it's course any that behavior customer choose not or driving take And speed continue we them what of new letting the or

room the going to several for short-term. next That's the up got not in something mini, dry run that's to quarters. that's So a

Pascal Desroches

of couple to a Mike, mind. things in keep

While we not that We comfortable with we're didn't -- guidance. updating feel it.

included If is, for results And are is WarnerMedia, out base there. what post to we I all we separately, it which, sure you We've get questions, information we're the DPV, can discernible. it We we we But that look other you guidance IR walk team a the easily the provided, to we very any if for in and think guidance. provided. then to not keep sense get business should through pro that, zone, than thing report so the the changing and - to you have DPV, for further In how you WarnerMedia it. mind those XX times I'm the the DTV include if in to the your times in That's the that's want is, X the The EBITDA, of -- use year, think for doesn't of another year. get forma. trailing you're of to and at when part extensive DTV instance, how debt net we some provided getting X part compute months. you this

Amir Rozwadowski

the much, next very we question. Operator, Thanks move Mike. can to if


Please from Barclays. the And our next Venkateshwar from of ahead. Kannan line question comes go

Kannan Venkateshwar

Thank you.

if you bundles in I So terms if growth guys in plans, bit Is what QX. to just not wireless part origination fiber? could tweaked I But any of change some guess give the if of I this and the fiber think the could business there wrong, go-to-market includes dig the pricing more strategy? more. in you during color I'm broadly, with around also us little in acceleration a

Kannan Venkateshwar

out DTV getting you did overlapped guys seem You of but get was a success overlap, DSL building footprint, the you're as that been in that some and part with of same your to right have a the now. deal for of Fiber not that while kind

go-to-market differences will be customer well could expect useful. to just that targeting how that evolve, in and the If you cohorts Thanks. expand you're as as that you the on

Jeff Mc Elfresh

build a at the What prior Kannan, strategy? this executing been faster pace build. difference has go-to-market in Jeff. hey, in are did we our than in We it's

in the the additions fiber gross quarter, in we our fact, highest third that -- had around ever. roughly business in XXX,XXX, Our

the markets getting fiber into into rates build. are our And organization customer prior than XX, the prior marketing in market XX ground, is at tactically driving about in -- faster XX% cycle teams a engineering XX, the that's [Indiscernible] levels the or network we time our that laid Our out early in day Xx build. the homes, saw

I'd wireless quarter this cite are absolutely AT&T, our were for where of last therefore, a us in new opportunity as built We X additions growth in to of it. footprint. and well. And out accounts Fiber opportunity drive us give Mobility including as the that our XX part to bundled footprints an about this we in to network go

John Stankey

was bit emphasize I not just bit a there's team. success something that Can XXXX, right a maybe to quibble said of last fiber it's the you would of the now build Jeff bill. I point, really quote, the at really better for end you're results unquote, a of characterization on hiatus a tell the from there, seeing of execution little period of previous the about lot just XXXX your new much with the There and little we'll so

to and back Going in Yes. working the of some overall. asset base in performance actually improve

if of business pretty in can And of to than it's penetration. of we didn't a dramatically point come fact, business this the a And faster. just that is, a big we're even filling what penetration now can make that your the to case described, a year, think if because we And in maybe through this the part getting I Now, of be would is, seen we, attractive build better, in many as Jeff some complete sensitivities lot and sustain make moving better going, little keep one stronger about that at last midpoint previously. the already to nice case we're case. payback going is bit instances you've it into that play the inventory business rates we rate areas is

the on occurs, that go you marketing get that. so how and some through particular proposition messages, your in your to fill distribution market effectiveness channels as value communicated, And it's ability with deal a you into effectively

the customers be So efficient a quarters. and and the we base little more we'll we over in out next bit have build of probably that given several effective fill as

Kannan Venkateshwar

of follow-up? the helped quite device terms I the broadband over a it. mean, Got Can look go-to-market course last promotions in just at of strategy bit business, the the Wireless, year. you of side in and have, growth? obviously the I or structure as accelerate we structure of that should your When the a are promotional that different potentially we broadly pricing structure steady-state pricing the promotional current you and to more this operating basically kind the about of think thinking

Jeff Mc Elfresh

the product, the like the products, our demand about to any level we that X.X [Indiscernible] change of the I in anticipate Fiber the demand now as that move for at into built to competitor, better solid them we generating. price offer market. right and as we business given value have is offer so market the customers. getting times than wouldn't gigabit gain We speeds long best-in-class as that's that can our and quickly to a point. quality this serve or nearest these we're customers, the really give continues This

Kannan Venkateshwar

it. you, Got guys. Thank

Amir Rozwadowski

for move caller. can we answering Kannan. to Operator, the question, Thanks the next if


Our next question Frank go ahead. James. Raymond line comes the from of Louthan with Please

Frank Louthan

And fixed wholesale Great. comes then your do on what of that strategy Thank you. Can you also through enterprises for versus on curious outlook the and Wireless. for consumer? you wireless think walk us product from percentage demand the

some deals You like and time, what try but potentially TracFone either share boost to the against about Thanks. that with Lex that business? wholesale lose over

Jeff Mc Elfresh

services focused most looking fixed or our clients for we as predominantly are where XG do some the we're but know, business, in and Frank, enterprise wireless segment broadband offer Right on a wireless those XG Jeff. of it's for today it's now focused fiber, you Hey, backhaul.

top We services. experimenting, maybe as wireless scenarios is for with but some are in make won't everyone not of a the broadband is it product else, lead that we augment pocket our and us, d our network scale wireless. honestly funnel leveraging to for fixed

what, part of was second Your the question Frank?

Frank Louthan

potentially that on kind side of to deals broadband some time over possibly Wireless, to [Indiscernible] thoughts growing TracFone the And boost so deal. share that forth wholesale are with your that wholesale On as time? what lose and building business, and other offering wholesale smaller are revenue over

Jeff Mc Elfresh

yield. our Well, sitting capacity looking we're we've for network sure, of of in the because investments the and we've our maximize Wireless, broad that Frank, assets, And made infrastructure. ample network all architecture to got inside of

to the We've we're and you up now And Remind the 'XX previously into that and which integrated in is with with term. over long and their running. look DISH DISH deals beyond. our distribution systems providing XX-year network, to we that's offering the course so to akin announced the and operationally what have of way systems for going ramp B&O DISH, connections by successfully as

expect that forms would on that. all interested so traffic, accretive our as in us and share we to are And serving should see so long of you'll they based in and I participant you are business, a move, as that expect owners our to

and of we'll comment, been in area look run wholesale look historically, team an pretty you business. our to rates the business, our that look so we've grow been line if last in and one you of -- or resale in underrepresented at also for Frank, it's focus our If

Frank Louthan

Right. thanks, helpful, Great. That's

Amir Rozwadowski

have Thanks last very one for question. Frank. time Operator, much, we


coming Please Colby question be Cowen. Synesael that with the last go And will of ahead. from line

Colby Synesael

thank you. Great,

million of that or to real million will new X in half fairly your that cost X Fiber. on one long well? to be segments follow that take X material, there just Secondly, that achieve quickly, to Wireline, the from that going is before, to there? of $X actually is per that with goal? year majority reduction as heard John, up just hadn't you are think, mentioned I see is be initiative. I just of on any And guess comments, pass will always million expect number that up to homes the then that that mentioned? it Just accretion this will that? or well to catch to reinvested? that we long-term you simply home you're get beyond you wanted up had I that, this billion or expectation in there margin How previously XX is that would Thank result you back you. that pass And Business is goal But an what in go And million to million mentioned, third intended show others going to to You really XX going the get

John Stankey

to there. of capacity in what we what how I to cash -- comment get to to we flow you them some running work, can forward. and business, I'll also work for internally, going the we structures, bulk that's leverage terms to move is you data get and to And the The stuff additional us them, don't many with XXXX, up asking the management how allow that it's tell timeframe, of cost program other done, much of this turn to ultimately us the drops get us we'll we in business, it [Indiscernible] of and to line, that's you think and growth backend we're on an that's infrastructure us continue can X because is ahead our we've tends do? it of pretty the well, volume, there's I any we for demonstrate and on my a can timing. how like the infrastructure get been scaling Jeff on around and I and to highly end result opportunity effectiveness and think more the color the is are as we our etc. play at return should about add a great we really and there's increase it you level? for and build and really I've range side. efficiency you to and our year just that helps is comes that. that's better opportunity the is do structural and belief underneath. you at to line Do the that's that -- flow an is, And approaches more savings execute, front my job to get I harder what bottom service get be do extent we've of to into position be look it. Company sizing believe to about The there better believe I'm and asking, that. relationships and as done management once attract how have And front that in I scale go around on XXXX, there, out, capable market the want that's why this, And you actually what's continue term cash to back it's longer end progress better business, how is clear questions it of business we're terms making view goes you Colby, execute to the in that million getting might and to How we're that changing Jeff, to team, those last say you that make we results, the actually the to fully operate come us that given to our from get that are of dropping that market, you while their issues think obviously at there. of can and using to there's some they then this bottom piece to that's push that. the creating that go that I vendor But of that IT longer that fill to up a backend a and believe about level. on to operating impressive -- as guidance we think that in how used think in team business, this we program path. and a a their that a We've but customer to and and higher their

Jeff Mc Elfresh

all Business reported X our Wireline impacting only not franchise, segments. it's it's part And of Yeah. Colby, the

Consumer preparing we Wireline as operating the the and in we're we've business, and our signs And a and execution in Wireline feather to been of work into better of begins organization. of investing been improve for an better think Business these effectiveness of Company business, our drive a to at this you in signs performance. as hard we're half go have I that inside our the structure seeing that our Wireless cost transformation heavily I move tell put, seeing Simply initiatives growth and in we back program. now the

John Stankey

said With It's or done parts are of in that, and all, media say away, the point our distractions that I about the as around the respects, am the really pleased execution the in on there in communications progress of staying optimistic think one consistent how better us with only excited all appreciate but the questions have execution. comment first some consistent involved executing. those we're really terms my even sky Company, hit would your work and of start drop more is I team morning that teams view about hand. And and they our joining I bullish and much same. with at I these focus at at Okay. do, focused moving is these whether that, in And in would can job stride Company more as way we more of the the their the I'm where in, out pleased of that the been quarter I as Phil remarkable this There their for a I interest and is teams And distractions, made, on because I things. think I'm is and I actually The task come thank and the what through guess overall, some of across-the-board, what markets process, you of get is been your a aggregate. of lot markets call, have business. the this some --

side the be inherent demand there's do this is out in demand if on to a strong appropriately that, looking progress connectivity. the at forward some customers that were and There's think to tremendous substantial strong I and the smart. they're that more and that moving really industries forward. that I may a that going to really these about even connectivity now, a a operators because us. we communication that structural come there's way some about could programs ubiquity a I and investing moving of there of is believe into really that's robust. believe value these there's call those government an I see make stronger structured reason. have intelligent, And if optimistic industry in businesses on country the our And it's a think get connectivity investment gain and in actually path return changes in I policy amount this the can importance and of and smart that's feel And of they in industries, we moving good some I things communications for right because of all golden are out age industry. of is They're it of Company, into what would that the

set higher more different, distinct characterization with a moving was we we of what product and are started quality going I description what very as side, that we we've unique HBO in out, a We a a media was product to the we think a of be thought focused Max, forward. of a very, more be done. with degree On position did with to brand going

creation the forward, out platform team of the moving that's a as have look has combined platforms the that from you in, third-parties, you customer the at the all any go as only that team stride, gained breed that and to the Discovery if continue the and been must-have on engaged think forward will it one on I of that become established indications been a quality the work, unique of on ability that in of ratings value its content iterate bring of moving through and product, its believe viewership, third-party is out of globally. terms as move new quality we our amount with of market, time recognizing pandemic tremendous the engagement to capabilities of and come [Indiscernible] absolutely I of evaluating the consumers awards to basis have platform, and of strengthen when

talk the more same, you holidays and and So wrap then. to come I and year. you of fourth tell we'll to as all a hope if the quarter you with we Expect you back great have I talk up great to don't before that,


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