AT&T posts second-quarter earnings as coronavirus influence continues


AT&T posted its second-quarter earnings on Thursday.

Angela Lang/CNET

For essentially the most up-to-date information and details about the coronavirus pandemic, go to the WHO web site.

As one other quarter handed with the coronavirus pandemic hanging over the financial system, AT&T is attempting to experience out the storm. 

In its second-quarter earnings launched on Thursday morning, the telecom big stated it had revenues of $41 billion, which is on par with estimates of $41.02 billion, in response to analysts polled by Yahoo Finance. Earnings per share got here in at $0.83, beating analyst expectations of $0.79. 

On the cell entrance, the service stated it had a internet lack of 151,000 postpaid cell phone customers, although the numbers are a bit extra sophisticated because of the coronavirus. 

AT&T says that 338,000 of the telephones it misplaced had been a part of the Federal Communication Fee’s Protecting America Related program, a coronavirus-related initiative designed to guard those that might not have the ability to pay their payments because of the pandemic from dropping service or being charged late charges. 

This system ran from March 13 by means of June 30, with the customers nonetheless related to AT&T’s community. Though they’re considered as disconnected proper now as a result of they did not pay their payments, the corporate says that if it provides these subscribers again it “would have had 190,000 postpaid cellphone internet provides.” 

Postpaid customers, or those that pay their cellphone payments on the finish of the month, are valued extra extremely by the funding group as a key metric for achievement. 

On the finish of the quarter, the telecom big had 171.four million wi-fi subscribers, up from 158.6 million a yr in the past. Throughout its earnings name the service introduced that its 5G community is now accessible nationwide.

Relating to conventional tv AT&T’s struggles continued. Whereas the corporate says that the addition of the streaming AT&T TV service helped offset losses, the video group continued to lose clients. 

The group, which additionally consists of DirecTV and the streaming service AT&T TV Now, posted a lack of 886,000 subscribers within the quarter, with 91,000 attributed to Protecting America Related applications. 

On the finish of the quarter, the corporate had 17.7 million “premium TV” subscribers. 

For WarnerMedia, AT&T’s division that oversees HBO Max and its different leisure properties, together with Warner Bros. movie and TV studios and cable channels similar to CNN, TNT and TBS, the telecom big reported working revenues of $6.eight billion, down 22.9% in comparison with 2019. 

Whereas HBO Max and HBO subscriptions at the moment are at a mixed 36.three million customers (up from 34.6 million on the finish of 2019), the HBO Max service stays absent on two of the biggest streaming platforms, Roku and Amazon Hearth TV, which make up the majority of the sensible TV market. 

Though WarnerMedia says it has apps prepared for each platforms, it stays to be seen if and when AT&T will have the ability to attain an settlement with both Roku or Amazon. 

Total, the quarter was a busy one for AT&T. 

Along with coping with the influence of the coronavirus on its companies, together with the continued closing of US theaters for its Warner Bros. division, the previous three months additionally noticed the service launch its HBO Max streaming service and proceed to develop its 5G wi-fi community. 

The corporate noticed the transition of John Stankey into the CEO spot, taking on for Randall Stephenson, who introduced his retirement in April after 13 years as AT&T’s chairman and CEO. 

Though he stepped down as CEO on July 1, Stephenson, 60, will stay govt chairman of AT&T’s board till January 2021.

Stankey is anticipated to supply an replace on HBO Max throughout the firm’s earnings name Thursday morning.

Supply hyperlink

Leave a Reply