AT&T Inc. (NYSE: $T) is an American multinational telecommunications holding company headquartered at Whitacre Tower in Downtown Dallas, Texas, providing telecommunications, media and technology services. It is the world’s fourth-largest telecommunications company by revenue and the largest wireless carrier in the United States.
The telecommunications giant is investigating a major data breach that has impacted around 73 million current and former customer accounts. AT&T revealed that on Saturday, March 30, 2024, a data set released on the dark web about two weeks ago appears to contain information from 2019 or earlier, affecting approximately 7.6 million current account holders and 65.4 million former account holders.
While AT&T has not yet determined whether the data originated from within the company or one of its vendors, it has taken steps to mitigate the impact. It has reset passcodes for all 7.6 million affected current customers and will offer credit monitoring services wherever applicable.
AT&T maintains that the incident has not had a material impact on its operations, and there is no evidence of unauthorized access to its systems that resulted from the breach. The scale of the breach is significant, considering that AT&T’s 5G network covers around 290 million people across the United States.
This data breach comes just months after AT&T experienced a widespread outage in February, disrupting calls and text messages for thousands of U.S. users and prompting federal investigations.
Dividend Payments Announced
In a separate development, on March 29, AT&T’s board of directors declared a quarterly dividend of $0.2775 per share on the company’s common stock.
The board has also announced dividends on the company’s preferred stock series. For the 5.000% Perpetual Preferred Stock, Series A, the dividend is $312.50 per preferred share or $0.3125 per depositary share, while the dividend for the 4.750% Perpetual Preferred Stock, Series C, the dividend is $296.875 per preferred share or $0.296875 per depositary share. Dividends on the common stock, Series A, and Series C shares are payable on May 1, 2024, to shareholders of record as of April 10, 2024
Additionally, an annual dividend of €2,875.00 per preferred share has been declared for the company’s Fixed Rate Reset Perpetual Preferred Stock, Series B, payable on May 2, 2024, to shareholders of record as of April 11, 2024.
Boosting Business Revenue with 5G Internet
Amid these developments, AT&T is actively pursuing strategies to bolster its business revenue, which has been lagging behind its consumer-focused divisions. In 2023, the company’s business wireline revenue tumbled 7.3% and operating income from that part slammed 43.7%.
To address this challenge, AT&T is rolling out a new business version of its AT&T Internet Air service, which utilizes its 5G wireless network to deliver internet connectivity at a low price. While the consumer version of Internet Air was launched last year in select areas, the business offering will be available nationwide.
AT&T is positioning Internet Air for Business as an attractive option for businesses where fiber internet is unavailable or as a backup internet connection. The service’s key selling points include ease of setup and competitive pricing undercutting rival offerings from Verizon. Plans for Internet Air for Business start at $60 per month, with discounts available for businesses with an AT&T Business Unlimited wireless plan.
Marissa Mayer Joins AT&T Board of Directors
In a move to strengthen its leadership, AT&T announced it had elected Marissa Mayer to its board of directors on March 2, 2024, effective immediately. Mayer, the Chief Executive Officer of technology start-up Sunshine Products and former CEO of Yahoo, will serve on the Audit and Corporate Development and Finance committees.
Bill Kennard, chairman of AT&T’s board of directors, welcomed Mayer’s appointment, stating, “Mayer’s extensive background in technology and her deep understanding of how consumers experience and engage with the internet will be a valuable addition to the board.” Her election brings the total number of AT&T directors to 11.
Mayer’s impressive resume includes 13 years at Google, where she was the company’s first woman engineer and her tenure as CEO, President and a member of the Board of Directors at Yahoo. She has served on the board of Walmart Inc. since 2012 and is currently a San Francisco Ballet board member.
AT&T Inc. (T) Stock Performance
As of the market close on March 28, 2024, AT&T’s share price stood at $17.60, reflecting a slight increase of 0.28% compared to the previous trading session. This positive movement indicates a modest gain in the company’s stock value, potentially reflecting investor confidence in AT&T’s future prospects and recent strategic initiatives. However, it’s essential to note that stock prices can fluctuate rapidly, as this only represents a specific moment in time.
Should You Invest In AT&T Right Now?
Investing in AT&T presents a mix of potential risks and rewards. The company faces challenges, including a significant data breach affecting millions of customers and a struggling business wireline segment.
However, AT&T is actively pursuing strategies to bolster revenue, such as rolling out a nationwide 5G internet service for businesses. Adding Marissa Mayer to the board will also infuse the company with tech expertise and will be a positive development.
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