On Thursday, July 22, the shares of the telecommunications company AT&T fell after its cash flow was affected by the later phone payments of its customers and due to the company's spending on building 5G infrastructure.
AT&T Suffers from Declined Shares
According to CNBC, AT&T said that its customers have been paying their bills about two days later than they did at the same time in 2021. That alone affected around $1 billion in quarterly cash flow.
AT&T CEO John Stankey told CNBC in an interview that there are great dynamics in the economy, and they have customers that are stretching out their payments a bit.
Stankey added that they expect the customers are going to continue to pay their bills, but they are taking too long to do it.
Given the costs, including investments in subscriber growth, the telecommunications company lowered its full-year free cash flow guidance from the $16 billion range to the $14 billion range.
AT&T shared closed down 8% at $18.92.
For the second quarter, the telecommunications company reported its revenue of $29.64 billion, down from $357 billion in the year-earlier period.
Excluding the impact of divestitures, the operating revenue has shot up to 2%.
According to Refinitiv, analysts are expecting revenue of $29.55 billion.
The telecommunications company said that it has adjusted earnings were 65 cents per share, which was above the 61 cents analysts had anticipated.
As part of its plan to resolve its combat cash flow issues and the inflationary environment, AT&T said in May that it would start to raise prices on its older plans, according to Bloomberg.
The company increased its monthly fees by $6 a month on its single-line plans and up to $12 a month on its family plans.
Stankey added that the executives have agreed to raise some prices on the long-standing plans. He also forecasted that there would be a more tepid economic environment coming but said that the investments the company is making would create the franchise for years to come.
Delivering Fiber Connection
According to AT&T Newsroom, the state of Indiana and AT&T are collaborating on a new plan to bring a fiber network to almost 6,100 homes, businesses, and farms in nine Indiana counties.
The $13 million project is contingent upon a final contract between India and the telecommunications company.
The plan calls for the company to build fiber networks in parts of several counties such as Clinton, Bartholomew, Grant, Hendricks, Johnson, Montgomery, Lawrence, Morgan, and Putnam.
Extensive design and engineering work will start after the execution of a final agreement between the telecommunications company and the state.
Indiana Lt. Gov. Suzanne Crouch, who is also the state's Secretary of Agriculture and Rural Affairs, said that their Next Level Connections efforts are helping families and business owners have access to high-speed, quality broadband.
Crouch added that the project would bring fiber-based internet to thousands who could not get it before.
AT&T has extensive experience deploying fiber-optics across the state as hundreds of thousands of locations in Indiana have access to its fiber connection.
The company is also currently working with Vanderburgh Country and the City of Boonville to bring the fiber connection to those communities.
This article is owned by Tech Times
Written by Sophie Webster
