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AT&T Q1 Headline Performance Broadly In line; Q1 Phone Net Adds And FCF Strong

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  • Q1 revenue missed Q1 consensus by ~1.6% (-0.4% YoY) while EBITDA was ahead by ~1.4% (+3.8% YoY). FY guidance re-iterated. KPIs look healthy with +349k postpaid phone net adds and +252k Fiber net adds against BBG-reported consensus of +304k and +260k.
  • Leverage of 2.9x from 3x at FY23 against the H1 target of H125. FCF looks quite strong at USD 3.1bn from USD 1bn in Q123 and against consensus of USD 2.5bn with USD 3.8bn CapEx against the USD 4.5bn consensus.
  • EUR spreads flat DoD. BBG headlines indicate the stock has reversed pre-market losses to sit +3%.

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