BY MARINA LOPES AND SOHAM CHATTERJEE
AT&T Inc T.N raised its full-year revenue forecast for a second time, citing strong growth in its equipment installment plan even as its service revenue stagnated.
AT&T shares inched up 0.3 percent at $35.55.
By the end of 2014, analysts expect two-thirds of AT&T’s postpaid wireless customers to be on its NEXT pricing plan, which unbundles device payments from mobile service payments. Due to the growing popularity of the plan, the company said it expects no service revenue growth in the second quarter and lower average revenue per user.
AT&T reaffirmed its full-year forecast for adjusted profit, margins, capital expenditure and free cash flow.
AT&T also expects increased content costs on its wireline business, a concern the company has said drove its $48.5 billion bid on DirecTV last month. (Reuters)