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In a call with analysts, AT&T said that it would consider selling off a number of its non-core assets to reduce its levels of debt
US telecoms giant AT&T has committed to cutting between $18 billion and $20 billion of debt from its balance sheet in 2019, through a series of strategic asset sales.
AT&T said it would look to divest a number of non-core assets over the next twelve months.
"We are staying focused on managing our debt portfolio," AT&T said, reflecting on the company’s most recent financial report.
"We’re on track to get to the 2.5x debt-to-EBITDA range by year-end 2019. And as we’re nearing completion of our fibre build and making pricing moves on video, we’re laying the foundation for stabilizing our Entertainment Group profitability in 2019. Across the business, I like our momentum and feel confident that we’re on track to deliver on our plans,” he said.
According to a report by Reuters, AT&T said that it also planned to raise up to $8 billion in new cash flows.
Markets reacted positively to the news of the proposed debt reduction as the company’s share price jumped by almost 2 per cent to $31.24 on news of the plan. The US telco has not yet specified what assets it expects to divest in 2019 but Reuters speculated that it could include a stake in the company’s streaming unit, Hulu.
According to Total Telecom’s Global 100 report, AT&T is the US’ biggest telco by revenue, with revenues of $148.8 billion (€131 billion) last year. As of the 30th September 2018, AT&T’s total debt level stood at $183 billion.
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