AT&T forecasts strong U-verse adds in Q2 2013

AT&T (NYSE: T) said before holding a meeting with financial analysts this week that it was seeing stronger U-verse broadband and TV subscriber in the second quarter over Q2 2012, but would not provide specific numbers.

In Q1 2013, U-verse was one of the biggest drivers of growth in its consumer wireline portfolio.

First quarter U-verse revenues rose 31.5 percent year-over-year and 5 percent sequentially. The telco added 232,000 U-verse TV subscribers, ending the quarter with a total of 4.8 million customers in service. AT&T also added 731,000 new U-verse broadband users in the quarter to reach a total of 8.4 million customers.

This year the telco will spend $14 billion to make upgrades to move its wireline network to an IP-based infrastructure and migrate some of its harder-to-reach copper customers to 4G LTE wireless services under the Project VIP initiative. Project VIP will put U-verse into the hands of more subscribers.

The telco said in a Reuters article that strong consolidated customer additions in new growth areas would drive down Q2 consolidated margins, including both wireline and wireless services.

AT&T, which reaffirmed its full-year 2013 revenue growth guidance exceeding 2 percent, will release its Q2 earnings after the market closes on July 23.

For more:
- see the release
- Reuters has this article

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