AT&T revises guidance up for U-verse
| 04 June 2014
AT&T has reported continued progress in the second full year of its Project VIP network investment plan, saying that it expects bundling of U-verse TV and broadband to be solid even with second-quarter seasonality and fewer migrations from DSL.
"Growing consumer preference for buying broadband and pay-TV services bundled together reinforces the strategic rationale of AT&T's proposed acquisition of DIRECTV," the company said.
It said that wireline margins continue under pressure, reflecting content cost increases, fibre expansion and high-speed broadband subscriber growth.
Based on all of these trends, the company raised its full-year 2014 guidance for revenue growth to be in the 5% range and reaffirmed its full-year 2014 guidance for stable consolidated margins, adjusted earnings per share growth at the low-end of the mid-single digit range, capital expenditures in the $21 billion range and free cash flow in the $11 billion range.