WarnerMedia, a wireless unit disappoints



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(Reuters) – AT & T Inc. on Wednesday missed Wall Street's quarterly revenue forecast, hurt by weaker-than-expected sales of its WarnerMedia unit as well as by its wireless business, where it cut back its prices to attract customers.

WarnerMedia, which includes Turner and the pay-TV channel HBO, recorded a turnover of $ 8.38 billion during the quarter, a figure lower than the estimates of $ 8.45 billion analysts, according to IBES data from Refinitiv.

AT & T is trying to reduce its dependence on the telephony industry by developing multimedia content through its $ 85 billion acquisition of Time Warner.

The company added a net network of 80,000 telephone subscribers, which surprised analysts to have predicted a loss of 44,000 subscribers, as it reduced the price of plans to tackle stiff competition in the saturated market of the American market.

However, this means that Mobility, the largest segment of AT & T, which includes its wireless business, generated $ 17.57 billion in revenue during the quarter, a missing estimate of 17 , 65 billion dollars.

The postpaid phone churn rate, or customer drop-out rate, was 0.93% in the first quarter, up from 0.84% ​​the year before.

AT & T's entertainment business, which includes satellite TV provider DirecTV, is in steady decline. Segment revenue fell nearly 1% to $ 11.33 billion.

Its rival, Verizon Communications Inc., on Tuesday raised its earnings forecast for 2019 and has surpassed Wall Street estimates for its quarterly profit, although it has lost more telephone subscribers than it did. predicted analysts.

Net income attributable to AT & T fell to $ 4.1 billion, or 56 cents a share, from $ 4.66 billion, or 75 cents a share, a year ago.

Excluding items, the company earned 86 cents per share, as estimated.

Total revenues increased nearly 18% to $ 44.83 billion, but fell short of expectations of $ 45.11 billion.

Shares of the company were down about 1% before the bell.

(Report by Akanksha Rana in Bengaluru and Sheila Dang in New York, edited by Shailesh Kuber and Anil D & # 39; Silva)

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