(Reuters) – AT&T forecast first-quarter adjusted profit in line with analysts’ estimates on Monday, signaling steady demand for its discounted premium plans combining 5G mobile with high-speed fiber data.
The U.S. telecom giant has been investing in its high-speed fiber internet offerings to help drive faster subscriber and revenue growth, at a time when the pool of potential new wireless customers shrinks in the United States.
On an adjusted basis, the company expects per-share earnings of 48 cents or higher excluding DIRECTV, compared with estimates of 49 cents, according to data compiled by LSEG.
AT&T, which acquired DirecTV in 2015, said last year in September that it would sell its entire 70% stake in satellite TV provider DirecTV to private equity firm TPG, exiting a business marked by declining distributions for the telecom operator. The deal is expected to close in mid-2025.
The company said on Monday it expects to receive about $1.4 billion to $1.5 billion of cash payments from DIRECTV related to this deal.
AT&T also reaffirmed its annual adjusted profit forecast in the range of $1.97 to $2.07 per share.
(Reporting by Kritika Lamba in Bengaluru; Editing by Alan Barona)
Comments