The trend away from traditional subsidies continues at AT&T.
finance.yahoo.com
AT&T Provides Update on Network Transformation, Second-Quarter Trends and Full-Year 2014 Financial Guidance
Business Wire AT&T Inc.
1 hour ago
DALLAS--(BUSINESS WIRE)--
Related Stories
AT&T Inc. (NYSE:T) reported continued progress in the second full year of its Project VIP network investment plan, strong second-quarter wireless trends and an increase in its full-year 2014 revenue guidance, while reaffirming its full-year guidance for consolidated margins, EPS growth, capital spending and free cash flow.
AT&T’s Project VIP network transformation plan, announced in 2012, is ahead of schedule:
AT&T’s 4G LTE network now covers nearly 290 million people; and
The company’s Project VIP broadband build is expected to take fiber to more than 400,000 new business customer locations by the end of the second quarter.
In Mobility, AT&T expects to report second-quarter results that include:
Postpaid subscriber net adds exceeding 800,000;
Postpaid churn of 0.95 percent or lower;
Approximately 3.2 million AT&T Next smartphone sales, which have risen throughout the quarter and now are expected to be approximately 50 percent of total sales; and
Approximately one-half of the company’s postpaid smartphone customer base on no-device-subsidy Mobile Share Value pricing plans, growing to approximately two-thirds by year-end.
AT&T Next and Mobile Share Value plans are driving a shift in the company’s wireless revenue components — resulting in higher equipment revenues and lower service revenues and ARPU, with no service revenue growth expected in the second quarter. The company expects second-quarter wireless service EBITDA margins to be pressured year over year due to the increased sales activity and strong customer movement to the no-device-subsidy Mobile Share Value plans. Wireless service EBITDA margins are expected to be over 40 percent in each of the three remaining quarters of 2014. |
