AT&T sees higher wireless service revenue as subscribers jump
2022.07.21 15:02
FILE PHOTO: The AT&T logo is seen in a store window in the Manhattan borough of New York City, New York, U.S., January 19, 2022. REUTERS/Brendan McDermid/File Photo
(Reuters) -AT&T Inc on Thursday raised its forecast for annual revenue growth at its wireless service business after reporting a jump in quarterly subscriber additions, as it bets on more people using its roaming services. AT&T (NYSE:T) has been focusing on making its 5G and fiber internet services widely available and has doubled down on promotional activities to gain subscribers. “As a result of our higher-than-forecasted customer growth, we’re increasing our mobility service revenue guidance to 4.5%-5% growth for the full year,” Chief Executive Officer John Stankey said. The company had earlier forecast wireless service revenue growth of 3% or more. The company has had to increase investments as it competes with Verizon Communications (NYSE:VZ) and T-Mobile US (NASDAQ:TMUS) race to rake in more 5G subscriptions, forcing it to cut its annual free cash flow forecast to $14 billion from $16 billion.
The company added 813,000 net new monthly bill paying wireless phone subscribers in the second quarter. AT&T also added 316,000 new broadband customers in the second quarter. Overall revenue for the second quarter was $29.6 billion, in-line with market estimates of $$29.55 billion, according to IBES data from Refinitiv. Excluding items, the company earned 65 cents per share.
