AT&T tumbles as bill payment delays hurt annual cash flow, drags peers

FILE PHOTO: The AT&T logo is seen in a store window in the Manhattan borough of New York City, New York, U.S., January 19, 2022. REUTERS/Brendan McDermid/File Photo

(Reuters) -AT&T Inc said some subscribers are taking more time to clear their bills, which partly led the U.S. wireless carrier to cut its annual free cash flow forecast by about $2 billion, sending its shares down as much as 11% on Thursday.

The conservative forecast comes as AT&T joins other companies to prepare for a potential slowdown in consumer spending in the second half of the year against the backdrop of four-decades high inflation in the United States.