AT&T raises dividend, gives 2008 outlook (USA)AT&T’s board of directors has approved a 12.7 percent increase in its quarterly dividend and a new 400 million share repurchase authorisation. AT&T increased the dividend from USD 0.355 to USD 0.40 per share on a quarterly basis and from USD 1.42 to USD 1.60 per share on an annual basis. AT&T’s new share buyback of 400 million shares replaces the programme announced in 2006, under which AT&T repurchased more than USD 13 billion of its shares. At a conference with investors AT&T also gave its outlook for 2008. This includes continued midteens mobile revenue growth and an acceleration in consolidated sales to the mid-single-digit range. The adjusted operating margin is expected to improve to 25-26 percent from an estimated 23-24 percent in 2007, and the mobile OIBDA margin will reach the low-40 percent range, moving towards the mid-40s by year’s end. The US operator predicted continued double-digit growth in adjusted EPS and growth in free cash flow to USD 16-17 billion. Capital expenditure is estimated at in the midteens as a percentage of total revenues. Finally, subscribers to AT&T U-verse are expected to exceed 1 million by the end of 2008, helped by the roll-out in the southeast of the country, started this month in Atlanta.
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