AT&T turned in mixed results for Q1, a period that also saw a 233,000 drop in its video subscriptions, according to the just-released financial report.

The telco, also the largest TV distributor, generated $3.47 billion in net income, down 8.8%, on revenues of $39.37 billion, down 2.9%. The top line was slightly below the $40.57 billion that analysts expected.

Adjusted earnings, at 74 cents a share, came in right where the Street anticipated.

Shares are up about 1% in post-market trading.

“In a very competitive quarter, we continued to execute on our goals of driving efficiencies
in our business while growing adjusted earnings per share,” CEO Randall Stephenson says. “But just as important, the strategic moves we’ve made over the last few months to expand our wireless capacity and fortify our 5G leadership will be felt for years to come.”

In the Entertainment Group, DirecTV subscriptions were flat at 21.0 million. All of the losses were at U-verse, now at 4.0 million.  Revenues from video, internet and other services fell 0.8% to $12.6 billion vs the same period last year.