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AT & T
Inc.
T 1.07%
In the last quarter, new corporate entertainment assets outperformed its traditional telecommunications business, while the company continued to experience losses from its traditional pay-TV customers.
The third quarter earnings of the Dallas company reached $ 4.72 billion, thanks to HBO's subscriber gains, to Warner Bros.'s revenue growth. and growth in subscribers in the mobile phone sector.
The core wireless business generated 69,000 net subscribers with postpaid phone plans, which many investors consider a barometer of wireless profitability. The company added 481,000 net subscribers to the prepaid phone. Overall wireless revenues increased 5.1%
This followed similar results to rivals
Verizon Communications
Inc.
Tuesday announced that it has networked 295,000 new postpaid phone connections over the same period. Most mobile operators have avoided offering significant discounts on wireless plans this year and have reported higher profits as a result.
"Wireless activity in the US is growing and is the largest contributor to our earnings and cash flow," said CEO Randall Stephenson, adding that the company was laying the groundwork to stabilize the losses of his entertainment group, including DirecTV.
Phone plans and Internet services still provide most of AT & T's profits, although the company has aggressively invested in advertising and entertainment. In June, she spent more than $ 80 billion on the owner of Warner Bros. Studios. and a selection of popular TV channels such as CNN, HBO and TBS. AT & T has renamed WarnerMedia.
The three months ended September 30th were the first full quarter under the control of the telecommunications company and helped to improve its bottom line. Earnings from operations increased 11% due to growth in HBO subscribers and 13% in Turner TV, due to higher subscription fee revenues charged to cable providers and satellite.
In terms of distribution, AT & T recorded 346,000 net customers less with DirecTV's U-Verse satellite and video service. The company has registered 49,000 additions of subscribers to DirecTV Now, a bundle of online channels offered in cable form.
Mr. Stephenson told investors in September that pay-TV subscriber losses seemed to be stabilizing after a year of sharp declines.
Subscriptions to traditional television channels are declining throughout the sector as more and more viewers opt for only cheaper online packages or completely abandon live television.
AT & T's overall profit was $ 4.72 billion, up from $ 3.03 billion a year earlier without WarnerMedia. Its revenues reached $ 45.7 billion.
Write to Drew FitzGerald at [email protected]
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