AT&T Wireless revises outlook

AT&T Wireless today revised its financial outlook for 2002 to reflect its early acquisition of TeleCorp PCS. The wireless carrier said it now expects to see increased revenue growth but lower operating cash flows.

With TeleCorp, AT&T said, the carrier would report services revenue growth in the low double digits--lower than analysts estimated and the company’s previous guidance. Factoring TeleCorp into the equation, AT&T Wireless expects mid-teen percentage growth for year 2002 for the combined company.

The acquisition of TeleCorp four months early, coupled with the current economic slump, will place pressure on AT&T Wireless’ cash flow. The carrier expects EBITDA to fall within the low- to mid-twenties.

AT&T Wireless also expects about 20% subscriber growth in 2002, bringing its customer base from 18 million at the end of 2001 to 21.6 million. Because of lower cash flows, the carrier also expects to reduce its capital expenditures by about $200 million.

--Kevin Fitchard, staff writer