AT&T raises full-year revenue outlook for second time




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BY MARINA LOPES AND SOHAM CHATTERJEE

AT&T Inc T.N raised its full-year forecast for a second time, citing strong growth in its equipment installment plan even as its stagnated.

The . 2 U.S. telecom services provider said Tuesday now expects full-year increase 5 percent, compared its prior forecast of 4 percent.

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 be its NEXT pricing plan, which unbundles device payments from mobile payments. Due the growing popularity of the plan, the company said expects revenue growth in the second quarter and lower average revenue per user.

Net subscriber additions the company’s wireless services are expected exceed 800,000 in the second quarter, said, well above Wall Street estimates of 525,000.

AT&T reaffirmed its full-year forecast for adjusted , margins, capital expenditure and free cash flow.

The company, which is scheduled to second-quarter results July 23, said it expects to sales of about 3.2 AT&T Next smartphones in the current quarter.

AT&T also expects increased content costs on its wireline business, a concern the company has said drove its $48.5 bid on DirecTV last month. (Reuters)