AT&T said it shed about 27,000 traditional net pay TV subs in Q4 2016 amid a loss of 262,000 U-verse TV customers and a gain of 235,000 satellite TV subs during the period.
AT&T, which has been deemphasizing U-verse TV and favoring the lower-cost DirecTV platform, ended 2016 with 21.01 million satellite TV customers and 4.25 million U-verse video subs.
AT&T also confirmed that the DirecTV Now launch in November resulted in more than 200,000 paid net adds during its first month in service, which enabled AT&T to generate total video sub growth in Q4.
Video ARPU for Q4 was $129.25, up from $129.59 in the year-ago period. IP broadband ARPU came in at $49.69 in Q4, versus $47.22 a year earlier.
On the high-speed side, AT&T lost 133,000 DSL subs and tacked on 136,000 “IP” broadband customers. It ended the period with 14.17 million total wireline broadband subs, comprised of 12.88 million IP subs and 1.29 million DSL customers.
AT&T’s Entertainment Group pulled in Q4 revenues of $13.2 billion, versus $12.99 billion in the year-ago quarter. Q4 results for that unit included video revenues of $9.56 billion for video, $1.91 billion for high-speed Internet, $1.1 billion for legacy voice and data services, and $655 million tied to “other service and equipment.”
AT&T posted consolidated Q4 revenues of $41.8 billion, down from $42.1 billion a year ago, and net income of $2.4 billion (39 cents per diluted share), down from $4 billion (65 cents).
Full year 2016 revenues were $163.8 billion, up 11.6% from $146.8 billion, driven by gains coming way of the DirecTV acquisition and gains in IP services and video.
AdWorks, AT&T’s advanced/targeted ad unit, pulled in $1.5 billion revenues in 2016.
AT&T also posted North American wireless net adds of 2.8 million.