AT&T Corp. said it expects pro forma revenue to rise
between 5 percent and 7 percent during the 1999 fiscal year, adding that earnings for the
period should fall within analysts' expectations.
In a press release issued last week, AT&T reaffirmed
that its earnings should be in the $2.13- to $2.20-per-share range. Cash flow -- or
earnings before interest, taxes, depreciation and amortization (EBITDA) -- would be at the
high end of previously announced expectations of $18 billion to $20 billion, the company
About 24 analysts surveyed by First Call estimated that
AT&T's1999 earnings would be $2.19 per share.
At its AT&T Broadband & Internet Services unit,
which includes the cable business, earnings and revenue are expected to grow in the mid-
to high-single-digits in 1999, corporate spokesman David Caouette said.
The company said it expects EBITDA for the cable operations
to be about $3.5 billion in 2000, with revenue at the unit pegged at $9.2 billion in the
"This is guidance we have given before and that
remains in place," Caouette said.
The company said wireless, professional services,
outsourcing and data revenue are growing at higher rates than previously projected.
However, consumer and business long-distance voice revenue
will be slightly lower than expected due to growing competitive pricing pressure across
As an answer to that pricing pressure, AT&T last week
announced a long-distance pricing plan that would drop its rates to 7 cents per minute.
Although that seems higher than previously announced plans
by competitors to charge just 5 cents per minute for long-distance calls, those lower
rates are only for calls made during certain times of the day. AT&T's plan is for
calls made at any time.
Consumer revenue for the year is expected to decline by 4
percent to 5 percent, and business revenue is seen increasing 6 percent to 7 percent.
AT&T said it anticipates that third-quarter total pro
forma revenue will grow 4 percent to 5 percent, while fourth-quarter revenue will rise at
a higher level.
In 1998, AT&T reported earnings of $6.4 billion, or
$3.55 per share, on revenue of $53.2 billion.