AT&T Inc. posted better-than-expected second quarter earnings Thursday, while boosting its forecast for mobility revenue growth, but lowered its full-year cash flow forecasts as it ramps-up investment in its expanding 5G network.
AT&T said adjusted earnings for the three months ending in June were pegged at 65 cents per share, down 27% from the same period last year but just ahead of the Street consensus forecast of 61 cents per share. Group revenues from its continuing operations, the company said, fell 17% to $29.6 billion, while the group's standalone mobility service revenues were pegged at $10.5 billion, up 4.6% from last year.
Around 800,000 post-paid wireless subscribers were added over the quarter, the company said, while overall revenue figures reflec the spin-off of its media assets into Warner Bros. Discovery earlier this year.
Looking into the second half of the year, AT&T said it's lowering its full-year free cash flow forecast by $2 billion, to around $14 billion, but boosting its mobility revenue growth guidance to between 4.5% and 5%. The group also reiterated its full-year profit forecast of adjusted earnings between $2.42 and $2.46 per share.
AT&T shares slid 1% in premarket trading.
