) provided data on subscriber addition for the second quarter of
2013. The update is encouraging with solid growth in U-verse
broadband and TV subscription. Further, the company also
projected net addition of approximately 500,000 in its post-paid
wireless services. Moreover, management continues to expect
full-year revenue growth of over 2%.
The company stated that it is experiencing a surge in its
wireless business, in particular the post-paid segment, from
promotional strategies that it had undertaken. These initiatives
have resulted into increased smartphone upgrades along with
higher sales from customer additions.
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Further, AT&T also highlighted the increase in its liquidity
position through proceeds received from YP Holdings LLC
distribution, in which it holds minority interest, and by
divesting 7% of its stake in
It was also reported that during the second quarter, AT&T
completed its second 300 million-share repurchase authorization.
The company also plans to begin a new share repurchase program of
300 million shares approved early this year. Complete details on
the company's financial performance for the ongoing quarter will
be released after the closing bell on Jul 23.
In the coming days, we expect AT&T to significantly benefit
from its Project Velocity IP. Under this project, AT&T will
invest $14 billion in the coming three years to considerably
expand the wireless (investment of $8 billion) and wireline
(investment of $6 billion) Internet Protocol (IP) broadband
The company targets to extend wireline IP network to nearly 57
million customer locations (including both customers and small
businesses) - covering 75% of AT&T's wireline service area -
by the end of 2015. This project underlines the company's efforts
to meet the growing demand for high-speed Internet. We believe
that this investment program will provide AT&T with a
high-potential growth platform, leading to higher revenues and
improved earnings per share over the near term.
AT&T, currently has Zacks Rank #3 (Hold)
Telefonica Brasil, S.A.
) with Zacks Rank #2 (Buy) are the two stocks we believe are
worth considering in the telecom sector.