Exhibit 99.2
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News Release
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FOR RELEASE WEDNESDAY, DECEMBER 20, 2000
AT&T UPDATES FOURTH QUARTER GUIDANCE
NEW YORK - AT&T (NYSE-T) today updated guidance regarding anticipated
revenue and earnings for the fourth quarter of 2000.
The company said its fourth quarter revenue growth would be lower than
previously projected due to industry-wide factors affecting its Consumer and
Business voice long distance business and changes in the anticipated signing of
certain large network management contracts by its Solutions unit.
Based on these trends, AT&T said it expects overall top-line revenue to
grow 2.5 to 3 percent in the fourth quarter, compared to previous guidance of 4
to 5 percent. The company said Business Services revenue is expected to grow by
about 1 percent, rather than the previously anticipated 2.5 percent, primarily
as a result of changes in anticipated contract signings by its Solutions unit,
but also due to industry-wide pricing pressures. AT&T said its Consumer Services
revenue continues to be affected by slower than expected industry growth and
increased technology substitution. As a result, Consumer Services revenue for
the fourth quarter is expected to decline at a mid-teens rate, compared to the
nearly 11-percent decline previously projected.
AT&T noted it expects fourth quarter growth in data and Internet
revenue will maintain its third-quarter growth rate of more than 20 percent.
The company said its Broadband unit is expected to deliver similar or
slightly improved fourth quarter revenue growth compared to its third-quarter
rate of 10.8 percent.
AT&T said its Wireless business is performing well relative to its
expectation of reaching the high end of its 30-35 percent revenue growth target
for the year.
AT&T said it expects operational earnings per share for the fourth
quarter to be in the range of 26 - 28 cents, compared to the 29 - 33 cents
previously projected, and operational cash earnings per share to be in the range
of 45 - 47 cents, compared to the previous forecast of 49 - 52 cents.
AT&T is scheduled to release full fourth quarter results in late
January, 2001, and expects to give further guidance on next year's expected
financial results at that time. However, the company said that fourth quarter
2000 performance in Consumer and Business Services will likely impact some of
the outlook measures for those businesses in 2001.
The foregoing are "forward-looking statements" which are based on
management's beliefs as well as on a number of assumptions concerning future
events made by and information currently available to management. Readers are
cautioned not to put undue reliance on such forward-looking statements, which
are not a guarantee of performance and are subject to a number of uncertainties
and other factors, many of which are outside AT&T's control, that could cause
actual results to differ materially from such statements. For a more detailed
description of the factors that could cause such a difference, please see AT&T's
filings with the Securities and Exchange Commission. AT&T disclaims any
intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. This
information is presented solely to provide additional information to further
understand the results of AT&T.
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