UPDATE 3-AT&T ups revenue, profit forecast after DirecTV buy

miércoles 12 de agosto de 2015 15:44 GYT

(Adds executive quote from analyst conference, updates stock price)

By Malathi Nayak and Lehar Maan

Aug 12 (Reuters) - AT&T Inc said on Wednesday it expects revenue, earnings and free cash flow to grow through 2018 following its DirecTV purchase and investments in Mexico, though it also sees higher capital expenditure.

As the U.S. wireless market reaches saturation, AT&T hopes to tap into DirecTV's video assets and has been expanding its wireless operations in Mexico to grow revenue.

AT&T, which closed its $48.5 billion acquisition of DirecTV in July, also plans to deliver video content through ad-supported TV streaming and mobile video products to unlock new revenue.[ID: nL1N1041WM]

The No. 2 U.S wireless carrier said in a statement it expects revenue to grow in the double-digit range for the rest of 2015. The company, which previously forecast capital expenditure of about $18 billion, said it sees that rising to about $21 billion.

AT&T forecast 2015 adjusted profit of $2.62 per share to $2.68 per share. Analysts on average were expecting a profit of $2.60 per share, according to Thomson Reuters I/B/E/S.

"In bringing together AT&T and DirecTV we've articulated a simple goal, the development of a premium, effortless entertainment experience delivered anywhere," chief executive Randall Stephenson told analysts on a conference call.

AT&T shares fell 2.7 percent to $33.71 in afternoon trading. Through Tuesday's close of $34.65, they had risen 3.2 percent this year.   Continuación...