Stocks/Earnings

AT&T Drops 49,000 Video Subs in Q2

Adds 342,000 DirecTV subs, but sheds 391,000 U-verse TV subs  in period 7/21/2016 4:46 PM Eastern

Solid additions of 342,000 DirecTV subs weren’t enough to offset U-verse TV losses of 391,000 as AT&T shed 49,000 total video subs during Q2 2016.

 

That’s been the video story at AT&T since it acquired DirecTV last July and applies a greater focus on the more profitible he satellite-based video platform.  AT&T, which lost 54,000 video subs in Q1, said it has added about 1 million net satellite subs since the AT&T acquisition.

 

AT&T ended Q2 with 25.29 million total video connections (20.45 million satellite and 4.84 million (U-verse).  DirecTV Latin America, meanwhile, added 87,000 subs.  

 

AT&T is preparing to launch a set of DirecTV-branded OTT video services in the fourth quarter of 2016.

 

AT&T lost 110,000 broadband subs in Q2 – it added 54,000 IP broadband customers, but shed 164,000 DSL subs. AT&T ended Q2 with 14.18 million total wireline broadband connections (12.5 million IP, and 1.58 million DSL).

 

On the wireless side, AT&T notched 1.4 million net adds in Q2, including 365,000 prepaid.  It also added about 800,000 branded smartphones to its U.S. base, offsetting a decline of about 600,000 branded “feature” phones. The carrier ended the period with 380 million North  American 4G/LTE POPs.

 

AT&T posted Q2 consolidated revenues of $40.5 billion, up 22% year-on-year, thanks mostly to the addition of DirecTV, and earnings of 72 cents, up from 70 cents in the year-ago period.

 

 “One year after our acquisition of DIRECTV, the success of the integration has exceeded our expectations,” said Randall Stephenson, AT&T’s chairman and CEO, in a statement.

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