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AT&T Expects Revenues To Grow At About 1%-2% CAGR From 2020-2022

(RTTNews) - AT&T expects revenues to grow at about 1%-2% CAGR from 2020-2022 and EBITDA margins to expand 200 basis points by 2022. Revenue growth is expected primarily from wireless, WarnerMedia and Mexico; margin growth is expected to come primarily from wireless, merger synergies, Mexico and cost initiatives.

The company said it has begun several additional cost reduction initiatives targeting an incremental 4% reduction in labor-related costs in 2020 or about $1.5 billion.

The company noted that it is evaluating a 100-million-share accelerated share repurchase program for the first quarter of 2020.

AT&T noted that it has already far exceeded its $6 billion - $8 billion goal for non-core asset monetizations in 2019 and targets another $5 billion to $10 billion in 2020, as part of its continuing portfolio review. These could include sales of regional sports networks, additional real estate and additional tower receivables.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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