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By Marina Lopes and Soham Chatterjee
June 3 AT&T Inc raised its full-year
revenue forecast for a second time, citing strong growth in its
equipment installment plan even as its service revenue
The No. 2 U.S. telecom services provider said on Tuesday it
now expects full-year revenue to increase 5 percent, compared
with 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 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.
Net subscriber additions to the company's wireless services
are expected to exceed 800,000 in the second quarter, it said,
well above Wall Street estimates of 525,000.
AT&T reaffirmed its full-year forecast for adjusted profit,
margins, capital expenditure and free cash flow.
The company, which is scheduled to report second-quarter
results on July 23, said it expects to report sales of about 3.2
million 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 billion
bid on DirecTV last month.
(Reporting by Soham Chatterjee; Editing by Ted Kerr, Tom Brown
and Sofina Mirza-Reid)