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AT&T shared 2019 plans to cut its debts by $20 million

On last Thursday, an adoption of variety of measure towards its commitment of cutting heavy loads of debts in next year has been showed by the AT&T. Possible sale of its stake in video streaming company Hulu along with a review of its other non-core assets are included in these AT&T’s measures.

AT&T, by the end of 2019 through the sale of some of its assets, has intended to generate up to $8 billion in cash in part and will pay down an amount ranging from $18 billion to $20 billion to lower its debts by the end of 2019. AT&T which is United States’ second-largest carrier by subscribers, shares these plans for 2019 in a presentation to analysts at New York.

During the presentation in after hours trading session, share of AT&T saw an increase of 1 percent but for the solid reasons of its acquisition of giant media company Time Warner and investors having been concerning about its massive debt of $183 billion as on September 30, AT&T’s share has experienced a decline of 21 percent till November this year.

In 2019, analysts for AT&T, according to IBES data from Refinitiv, have been estimating an average free cash flow of $24.84 billion, whereas company is expecting a free cash flow of about $26 billion.

To achieve net-debt-to-adjusted-EBITDA ratio of 2.5 times range at its end-of-year, AT&T has been considering growth in free cash flow a helping factor.

AT&T also shared fresh details of its new video streaming segment WarnerMedia, which includes premium channel HBO and Turner networks, expected to be launched by the end of 2019 and proved to be the new streaming rival to Netflix and hoping to be attracting more subscribers to align the effects of declining customers from its DirecTV. Consistent to the decrease in Q3 this year, AT&T in 2019, has also been expecting decline in video subscriptions.

Gary Williams

Written by Gary Williams

Gary Williams:- Technology

I am Gary Williams and I’m passionate about business and finance news with over 9 years in the industry starting as a writer working my way up into senior positions. I am the driving force behind newsstoriesworld.com with a vision to broaden the company’s readership throughout 2015. I am an editor and reporter of “Technology” category.

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