Stocks/Earnings

AT&T Drops 233,000 Video Subs in Q1

Satellite TV growth flattens as U-verse TV sub base continued to shrink 4/25/2017 6:56 PM Eastern

AT&T said it shed 233,000 domestic pay TV subs in the first quarter, as DirecTV satellite sub growth was unchanged amid continued losses of U-verse TV subs.

AT&T did not disclose updated sub numbers for DirecTV Now, the OTT TV service it launched last November, but noted that DirecTV Now gains helped to offset its decline in linear TV subscribers.

AT&T ended Q1 with 25.06 million domestic video subs -- 21.01 million from DirecTV satellite subs, up 4.5% year-on-year, and 4.02 million from U-verse TV, down 23.2%.

The company added 115,000 total broadband subs in Q1 as it added 242,000 IP broadband subs amid continued losses of DSL subs. AT&T ended Q1 with 14.11 million IP broadband customers and 1.58 million DSL subs.

AT&T said it ended the period with 4.6 million AT&T Fiber “customer locations” and plans to add 2 million to that total in 2017.

AT&T posted consolidated Q1 revenues of $39.4 billion, down slightly from $40.5 billion in the year-ago quarter primarily due to record low equipment sales in wireless. It generated Q1 net income of $3.5 billion, or 56 cents per diluted share 

Among individual areas of the company, AT&T pulled in $9.02 billion in video entertainment revenues, up 1.3%, and high-speed Internet revenues of $1.94 billion, up 7.7%.

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