Boston, MA 06/05/2014 (wallstreetpr) – AT&T Inc. (NYSE:T) has a positive outlook for the sales figure for year 2014. It has increased its revenue forecast for the year. At the same time, company has made it clear the adjusted earnings per share are expected to come at the lower end. The financing strategy may have a negative impact on profits. The customers are buying new phones on installment plans and, therefore, the impact will be visible on the profits. The company is positive on the growth in the monthly customers in the second quarter. It expects the monthly customer base to increase by more than 8, 00,000 customers.
The new plan is working
The customers are opting for the Next and AT&T’s financing plan for buying the new phones. The Next consumers contributed for more than 40% of phone sales in the last quarter. AT&T Inc. (NYSE:T) and the other wireless companies are getting more flexible in the offers and plans. The trend was first started by T-Mobile US Inc (NYSE:TMUS) last year. They are offering the installment plans to increase the customer base.
The benefits of flexible plans
By opting for the installment plans, customers can easily buy the costly Smartphone that comes around $650 or above. The customers don’t need to opt for two-year commitments. The new flexible plan is helping the company to boost its device sales. There is no need to offer any discounts on the devices. It also helps in reducing the monthly service bills,
The revenue forecasts
AT&T Inc. (NYSE:T) doesn’t expect the wireless service revenue to grow in the current quarter. As discussed, the reason is the more and more customers opting for the installment plans. The revenues will see a growth of 5% in the current fiscal year. It is better than the previous projection of 4%. It is even better than the analysts’ estimates of 3.6%.
