Telecom giant AT&T is considering a series of measures to achieve its objective, such as the review of all its non-essential assets. The group expects a free cash flow of around 26 billion dollars, above what was expected by the analysts.
AT&T revises its strategic plan for 2019. A little more than a month before entering a new year, the US company has set itself the goal of reducing its bulky debt by some 20 billion dollars. The group has not detailed what measures it will take to achieve this goal, although it has ensured that it will review all its non-essential assets, including its stake in Hulu.
The company plans to generate more than 8 billion in cash thanks to the sale of some assets, as explained at a meeting with analysts in New York. This cash generation will allow, according to the company’s plans, to reduce its debt ratio. The shares of the telecom and media conglomerate rose 2% after the announcement of the revision of its strategic plan for 2019. The stock is still 21% down so far this year. During the meeting, AT & T also provided some details regarding its new streaming platform, which is expected to be released by the end of 2019.
This new product will include three levels of service: a package focused on the movies, another with programming and another with content licensed from other providers. The new platform will allow it, the company explained, to offset the drop in video customers of its satellite television company DirecTV.
AT & T is looking to extend its footprint in the entertainment business a few months after closing the purchase of Time Warner. Specifically, it will be a “complement” to their business that will allow them to expand their reach “offering a new choice for entertainment with the WarnerMedia collection of films, television series, libraries, documentaries”, as detailed by AT & T.