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.”
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,