DirecTV added 342,000 domestic customers in Q2 — slightly below some analysts’ estimates –the world’s largest TV distributor says. With the loss of 391,000 at U-verse, AT&T’s total domestic TV business is down by 49,000 to 25.3 million.
That reflects its “focus on profitability and DirecTV platform,” AT&T says.
CEO Randall Stephenson says that cost synergies at DirecTV, acquired a year ago, “are ahead of target.” He also mentioned that the streaming service AT&T plans to introduce later this year will “serve every segment of the video industry and offer customers their favorite content virtually wherever and whenever they want it.”
AT&T Loses Video Subs In Q1 As U-Verse Drop Outweighs DirecTV Gains
Industry watchers were especially interested in the AT&T video numbers after the No. 2 satellite company, Dish Network, this morning said that it lost 281,000 pay TV subscribers — its biggest-ever quarterly loss — despite the inclusion of numbers from its growing Sling TV streaming service.
It had 13.6 million pay TV subscribers at the end of June.
AT&T’s Entertainment Group reported operating income of $1.7 billion in Q2, which contrasts with a $196 million loss in the period last year. With DirecTV, revenues increased 120% to $12.7 billion.
At the entire company, including the phone businesses, AT&T generated $3.4 billion in net income, up 10.6%, on revenues of $40.5 billion, up 22.7%.
The top line was a little below the $40.6 billion that analysts anticipated. Diluted adjusted earnings at 72 cents a share matched the Street’s expectations.
AT&T’s share price declined 1.2% in post market trading. It’s up 23.6% in 2016,
Subscribe to Deadline Breaking News Alerts and keep your inbox happy.