By Dhirendra Tripathi
Investing.com – AT&T stock (NYSE:T) rose 1.5% on Friday as it outlined a capital expenditure of $48 billion through 2023 while drawing plans for a life without its media assets.
"Now that the close of the WarnerMedia deal is approaching, we are near the starting line of a new era for AT&T," CEO John Stankey said in a statement ahead of a presentation to analysts.
AT&T is merging its media business with Discovery (NASDAQ:DISCA) in a $43 billion deal. The new combined entity is projected to have approximately $52 billion in revenue by 2023 and adjusted earnings before interest, taxes, depreciation, and amortization of around $14 billion.
AT&T said it will focus on building out its 5G and fiber network. It said the $48 billion capex will be split equally over two years and will taper to the $20 billion range starting 2024.
The company wants to raise fiber internet availability to 30 million homes in the U.S. and expand its 5G network to cover over 200 million people.
By 2025, AT&T expects that 75% of its network will be served by fiber and 5G and that it will have reduced its copper services footprint by 50%.
The company expects to reach $6 billion in run-rate cost savings by end-2023.
AT&T reiterated its annual revenue will grow in low single-digit in the current financial year. Adjusted profit per share is seen at $2.44 at midpoint of its guidance range.