Friday, 22 September 2017

AT&T to use new scale to cut content costs

By Mary Lennighan, Total Telecom
Thursday 13 August 15

U.S. telco raises guidance in wake of DirecTV, Mexico acquisitions; eyes cross-selling opportunities in U.S. and possibility of expansion in Latin America.

AT&T on Wednesday upped its financial guidance for the next three years on the back of its newly-completed DirecTV buy and earlier acquisitions in Mexico. Executives from the U.S. telco spoke at length on a call with analysts about the company's growth prospects, particularly with regard to converged services in the U.S., and insisted that it stands to realise significant cost synergies as a result of the merger with DirecTV, by obtaining cheaper content rights, amongst other things. The company expects to generate double-digit revenue growth this year, and puts full-year adjusted earnings per share at $2.62-$2.68; in January it forecast EPS growth in the low single digit range…

AT&T on Wednesday upped its financial guidance for the next three years on the back of its newly-completed DirecTV buy and earlier acquisitions in Mexico. Executives from the U.S. telco spoke at length on a call with analysts about the company's growth prospects, particularly with regard to converged services in the U.S., and insisted that it stands to realise significant cost synergies as a result of the merger with DirecTV, by obtaining cheaper content rights, amongst other things. The company expects to generate double-digit revenue growth this year, and puts full-year adjusted earnings per share at $2.62-$2.68; in January it forecast EPS growth in the low single digit range…

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