AT&T sees higher wireless service revenue as subscribers jump

[July 21, 2022] (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 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 and T-Mobile US 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.

(Reporting by Chavi Mehta and Eva Mathews in Bengaluru; Editing by Vinay Dwivedi)

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