(Reuters) – AT&T Inc missed fourth-quarter income estimates on Wednesday as one other fall in subscriptions to satellite tv for pc TV supplier DirecTV overshadowed better-than-expected signal ups in month-to-month telephone subscribers.
FILE PHOTO: Buyers stroll previous an AT&T as pre-Thanksgiving and Christmas vacation buying accelerates on the King of Prussia Mall in King of Prussia, Pennsylvania, U.S. November 22, 2019. REUTERS/Mark Makela
AT&T has spent a mixed $134 billion on DirecTV and Time Warner to remodel itself right into a media firm, however is struggling to stem the lack of invaluable satellite tv for pc subscribers as audiences reduce the wire and swap to streaming companies.
Income from the leisure section, which incorporates DirecTV, fell 6.1% from the earlier yr to $11.23 billion.
AT&T stated it misplaced 945,000 “premium” TV subscribers through the fourth quarter, together with from DirecTV, and a smaller variety of cable TV subscribers. Analysts at MoffettNathanson had estimated AT&T would lose a web 641,000 satellite tv for pc prospects.
To counter the lack of prospects to streaming platforms like Netflix Inc and Amazon.com Inc’s Prime, AT&T plans to launch its personal streaming platform HBO Max in Could.
The corporate stated it added a web 229,000 new telephone prospects within the quarter. Analysts had estimated the corporate would add 145,000 telephone subscribers, in accordance with analysis agency FactSet.
AT&T reaffirmed its 2020 steerage with plans to take a position between $1.5 billion and $2 billion on streaming content material in 2020, and an extra $1 billion in 2021 and 2022.
Complete working income within the quarter ended Dec. 31 fell to $46.82 billion from $47.99 billion a yr earlier. Analysts had been anticipating $46.96 billion, in accordance with IBES knowledge from Refinitiv.
The WarnerMedia section, which incorporates premium TV channel HBO, reported income of $8.92 billion, lacking analysts’ estimates of $9.03 billion.
The corporate stated the autumn in income from WarnerMedia was as a result of it stopped licensing content material, for instance in style sitcom “Buddies,” to different streaming companies like Netflix because the launch of HBO Max nears.
Web revenue attributable to AT&T fell to $2.39 billion, or 33 cents per share, from $4.86 billion, or 66 cents per share, a yr earlier.
AT&T reported a revenue of 89 cents per share, beating Wall Avenue estimates of 87 cents per share.
The corporate introduced a three-year cost-cutting plan in October, together with asset gross sales price as much as $10 billion to repay debt, bowing to strain from activist investor Elliott Administration which questioned its spree of costly acquisitions.
AT&T has appointed Seagate Expertise Plc chairman Stephen Luczo to assist with company improvement and finance and can identify one other board member this yr.
The corporate’s shares traded at down marginally at 38.41 in pre-market buying and selling.
Reporting by Neha Malara in Bengaluru and Arriana McLymore in New York; Modifying by Arun Koyyur; Modifying by Kirsten Donovan