CLAIM #55247 · AT&T Inc. (T) · 2024Q3 earnings call · Oct 23, 2024 · due Oct 23, 2026
“what you should see is over time, profit margins that are much closer to some of our scale broadband competitors.”
Pascal Desroches · CFO
How to check this claim
Look at: Consumer broadband segment profit margin (e.g., EBITDA margin as disclosed)
It came true if: Broadband segment margin gap versus scale broadband peers narrows relative to the gap reported as of Q3 2024
Where: Company segment disclosures (10-K/10-Q broadband segment results and quarterly earnings call commentary)
In context
“urse, would be depending on when the deal closes, that would be another variable. So if you could just help us think through the operating leverage side and the cash flow that would be helpful. Thank you. Pascal Desroches: Sure thing. I'll start, and John will probably chime in. Here's the way I think about it, we've been investing because we expect to continue to grow our business over time. So you should expect a continuation of our EBITDA growth over time. And we will -- our Mobility business, we're really pleased with how we've been performing. And I believe that it's one that we can sustain that. Similarly, we're really pleased with our Consumer broadband business, and we continue to believe that there is opportunity to drive more operating levers there as we continue to scale fiber, what you should see is over time, profit margins that are much closer to some of our scale broadband competitors. And I would -- we still have an opportunity across the board to continue to work on cost, whether it is costs associated with serving our customers through the use of AI, machine learning, there are plenty of opportunities there as well as we have opportunities to continue to rationalize our real estate footprint. And over time, the other benefit to think about the 2025 is the fact that, the last 2023 and 2024 will be a year that we have spent paying down vendor financing balances fairly significantly. And as we exit this year, I would expect us to be at a level that we will manage the company at overtime. So while those investments have depressed free cash flow over the last two years. We're going to be in a position where they are not going to depress free cash flow. Going the other way”
Verify independently
SEC filings for T ↗ · Claim quote is verbatim from the 2024Q3 earnings call.