AT&T Inc.

Ladies and gentlemen, thank you for standing by. Welcome to AT&T's first quarter 2022 earnings call. At this time, all participants are in a listen-only mode. If you should require assistance during the call, please press star, then zero, and an operator will assist you offline. Following the presentation, the call will be open for questions. If you would like to ask a question, please press 1 and then 0, and you will be placed in the question queue. If you are in the question queue and would like to withdraw your question, you can do so by pressing 1 and then 0. As a reminder, this conference is being recorded. I would like to turn the conference over to our host, Amir Rozwedowski, Senior Vice President, Finance and Investor Relations. Please go ahead.

Thank you and good morning, everyone. Welcome to our first quarter call. I'm Amir Rozbudowski, head of investor relations for AT&T. Joining me on the call today are John Stanky, our CEO, and Pascal DeRoche, our CFO. Before we begin, I need to call your attention to our safe harbor statement. It says that some of our comments today may be forward-looking. As such, they're subject to risks and uncertainties described in AT&T's SEC filings. Results may differ materially. Additional information is available on the Investor Relations website. And as always, our earnings materials are on our website. With that, I'll turn the call over to John Stanky. John?

Thanks, Amir, and good morning to all of you. Appreciate you joining us this morning. Two weeks ago, we reached a major milestone in the repositioning of our business with the completion of the WarnerMedia discovery transaction less than 11 months after announcing the deal. I'd like to thank everyone who played a role in getting this across the finish line in good time and with a little drama, just as we promised you. I'd also like to share how proud we are of the entire WarnerMedia team. David inherits an organization with one of the best global portfolios of beloved intellectual property, a team with unparalleled talent, and one of the few truly global direct-to-consumer players is evidenced by the continued growth in HBO Max and HBO subscribers, which closed this quarter at nearly 77 million globally, up 3 million from last quarter, and nearly 13 million year over year. We're excited about the potential for continued HBO Max growth as the service launches in more new territories. Warner Brothers Discovery is well-positioned to lead the transformation we're seeing unfold across the media and entertainment landscape. And like many of my fellow AT&T shareholders who own a stake in this new and promising enterprise, we're excited to continue to watch their success and the value they create as one of the leading global media companies. So let me turn to AT&T and the new era and opportunities ahead of us. Our transaction marks a critical step in the repositioning of our business. We're now able to focus intensely on what we believe will be multi-year secular tailwinds in connectivity. We now have the right asset base and financial structure to devote our energy to becoming America's best broadband provider. Over a five-year period, we expect a five-fold data increase on our networks and we plan to capitalize on the growing desire from consumers and businesses for ubiquitous access to best-in-class connectivity solutions. The results we've achieved the past seven quarters, all while undergoing a significant repositioning of our business, give me confidence that we can accomplish this goal. Our first quarter financial results are consistent with our expectations and, once again, demonstrate that our teams are executing well against our consistent business priorities. We're seeing record levels of net additions in mobility and consistently strong AT&T fiber growth thanks to our disciplined and consistent go-to-market strategy. In mobility, our strong network performance, simplified offers, and improving customer experience brought in the most first-quarter post-paid phone net ads in more than a decade, surpassing last year's then decade best first quarter total. And we're confident we can continue this momentum in a disciplined manner given our subscriber success has come from diversified channels that span consumers and businesses. In fiber, we continue our great build velocity and now have the ability to serve 17 million customer locations. This expansion continues to allow our business to grow. And this quarter, we achieved overall broadband subscriber and revenue growth as our FiberNet ads more than offset legacy non-fiber broadband losses. And I'm pleased with the improved fiber momentum we're seeing with our multi-gig plans launched early in the first quarter. It's also noteworthy that we're experiencing improved subscriber growth following the introduction of our straightforward pricing across the fiber portfolio, which does away with discounted introductory pricing. This improvement in share gains suggests that consumers are finding value in higher quality services when they're made available to them. So taking a step back, Let's review our progress over the last seven quarters. During that time, we've added industry-best subscriber totals of more than 5.3 million in postpaid phones and nearly 2 million in AT&T fiber, as our fast-growing fiber revenues now make up nearly half of our consumer wireline broadband revenues. This is real and sustainable momentum. We also continue to emphasize effectiveness and efficiency across our operations. As we shared at our analyst day last month, we expect to achieve more than $4 billion of our $6 billion cost savings run rate target by the end of this year. Our focus on driving efficiencies continues to show tangible results from our network build-out to customer experience. As we told you, We're initially reinvesting these savings to fuel growth in our core connectivity businesses. However, as we move to the back half of this year, we expect these savings to start to fall to the bottom line. Our success over the past seven quarters can also be attributed to our focus on better recognizing and delivering on what customers want. Our mobility and fiber net promoter scores are up year over year, and near historically low churn levels across all businesses demonstrate how our improvements to the customer experience are real and delivering a positive impact. Our business wireline unit continues its transformation. As we move through this year, we had planned to accelerate the pace at which we reposition the business as we focus our energy on growing repeatable core connectivity and transport solutions where we have owner's economics. At the same time, we'll continue to rationalize reselling low-margin third-party products and services. The expansion of our fiber footprint is enabling our business portfolio to target significant opportunities in the small and medium business market, allowing us to capture a greater portion of the opportunities in core transport and connectivity. In addition, as we open up relationships with more customers, we'll have incremental opportunities to continue our growth in business wireless. We expect to take advantage of these near-term opportunities to help stabilize our business wireline unit as we simplify the portfolio and grow connectivity with small to medium-sized businesses complementing our leading enterprise position. As we thoughtfully fuel growth for services powered by our owned and operated connectivity assets, we're also being deliberate in how we allocate our capital. We've taken significant steps to improve our financial flexibility, and we're now in a much better place to grow our business as we significantly invest in the future of connectivity through 5G and fiber. With the completion of the WarnerMedia discovery transaction, we've monetized more than $50 billion of assets since the beginning of 2021. And with this transaction, we reduced our net debt by approximately $40 billion in April. As we share, we feel as though we're really well-suited to navigate this unique moment in time. This leaves us in a much better position to pay down debt. In fact, we've already addressed some of our near-term maturities and paid off over $10 billion in bank loans. This improved financial posture gives us the flexibility to carefully and prudently use the balance of the WarnerMedia proceeds to reduce our outstanding debt by opportunistically using the evolving higher-rate environment to redeem debt securities at lower prices while also working to reduce cash interest. In addition, our expectations for continued strong cash generation provide us with incremental capabilities to reduce leverage while still paying an attractive dividend yield near the top of the Fortune 500. This improved financial flexibility also allows us to pursue durable and sustainable growth opportunities that offer future upside for customers and shareholders. If you couldn't tell, I'm proud of all the work the team has accomplished to reposition the business over the last seven quarters and could not be more excited about this next chapter for AT&T. I know our teams are thrilled about the momentum we're generating with our deliberate and focused approach in attracting and retaining customers. I'll now turn it over to Pascal to discuss the details of the quarter. Pascal.