AT&T Inc.

Ladies and gentlemen, thank you for standing by. Welcome to the AT&T fourth quarter 2018 earnings call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. Instructions will be given at that time. If you should require assistance during the call, please press star, then zero. I'd also like to remind you that this conference is being recorded. I would now like to turn the conference over to our host, Michael Viola, Senior Vice President of Investor Relations. Please go ahead, sir.

Hey, thanks, Leah. Good morning, everyone, and welcome to the fourth quarter conference call. As Leah said, I'm Mike Viola. I'm Head of Investor Relations here at AT&T. Joining me on the call today is Randall Stevenson, AT&T's Chairman and CEO, and John Stevens, AT&T's CFO. Randall's going to provide an overall business update as well as discuss our 2019 business initiatives. John's going to cover results along with the 2019 outlook, and then we'll get to a Q&A session. Before we begin, you need to call your attention to our Safe Harbor Statement. It says that some of our comments today may be forward-looking, they're subject to risks and uncertainties, and results may differ materially, and I'd tell you that additional information is available on the Investor Relations website. I also need to remind you that we're in the quiet period for the FCC Spectrum Auctions 101 and 102, so we can't address any questions about that today. So as always, our earnings materials are available on the Investor Relations website. It includes our news release, 8K, investor briefing, associated schedules, et cetera. And so with that, I'd like to now turn the call over to AT&T's Chairman and CEO, Randall Stevenson.

OK, thanks, Mike. I'm going to start on slide four of the deck with a brief overview, and then I'm going to give some highlights for the past year. And I would characterize our results as basically doing exactly what we committed during our analyst day in November. And in fact, I would say we're ahead of schedule on each of our key priorities. And as we said, our top priority for 2019 is driving down the debt from the Time Warner acquisition. And I couldn't be more pleased with how we closed the year. We generated record free cash flow of $7.9 billion in the fourth quarter, with the dividend payout as a percent of free cash flow below 50%. Our full year free cash flow is also an all-time record, even with near record capital spending. For the full year, our dividend payout as a percent of free cash flow was 60%, and that allowed us to increase the dividend in December for the 35th consecutive year. So while I'm pleased with our financial results for the quarter, we also feel good about the progress we made during 2018 on all of our strategic imperatives. First, we finally closed Time Warner, and we have brought together the leaders in content and distribution. And as committed, this transaction has been accretive since day one. And as John is going to discuss shortly, WarnerMedia had a terrific fourth quarter. We also launched Zander, our advertising business. And then following our acquisition of AppNexus, Brian Lester and his team are integrating that platform. They're applying Xander's customer insights to Turner's ad inventory. And with fourth quarter revenues growing at 26%, our enthusiasm around this opportunity is continuing to build. In terms of our networks, our quality and performance are on a very strong trajectory. GWS named us the best network in the most comprehensive study that's been conducted. We introduced the first standards-based mobile 5G network in parts of 12 cities last month, and our first NET deployment finished the year well ahead of schedule. We also accelerated our fiber deployment, and we now reach 11 million customer locations in addition to 8 million business locations. As a result, our broadband business grew by over 6% in the quarter. And it's really important to note that this fiber deployment is foundational to our 5G network. And I would highlight a couple of other items on this slide. First, strong wireless performance with growth in both revenue and EBITDA. WarnerMedia's continued strong growth in revenue and margins. In our Latin American business, which grew subscribers in Mexico and in Rio. And last, our total company pro forma EBITDA grew by 7.2% for the quarter. If you go to the next slide, you're going to see our key priorities for 2019. There's no surprises. It's what we discussed back in November, and our top priority is to delever the balance sheet. We have strong operational momentum coming out of 2018, and this is going to allow us to reduce our debt and continue our strong record for paying dividends. And it's important to note that we're doing all of this while investing at industry-leading levels in fiber, 5G, and FirstNet. We expect to continue growing wireless service revenues. The entertainment group, that's obviously our heaviest lift for 2019. But we're on a path to stabilize it in 2019. And we're actually quite confident that you're going to see significant improvement in the first quarter. The focus at WarnerMedia is delivering the merger synergies and continuing to build on our 2018 momentum. And in the back half of the year, we plan to launch a premium SVOD service that's featuring content from all of our WarnerMedia brands, specifically Warner Brothers, HBO, and Turner. And then last, Zander. And it's quickly scaling its capabilities into the ad inventories of Turner, our mobility business, and all of our TV and over-the-top products. So that's where we're focused on 2019. We do feel very good about our ability to deliver in each of these areas. And so with that, I'm now going to turn it over to our CFO, John Stevens, and he'll take you through the results. So John? JOHN STEPHENS- Thanks, Randall.