AT&T Sheds Subs For DirectTV Now Steaming Service

The world’s largest telecommunications company, AT&T, Wednesday reported 15.2% jump in fourth-quarter revenue to $48 billion, partly helped by the Time Warner acquisition. Earnings for the quarter rose to 86 cents per share from 78 cents per share a year ago.

Analysts had projected earnings of 85 cents per share on a top line of $48.42 billion.

Randall Stephenson

Chairman and CEO Randall Stephenson stated:  “Our top priority for 2018 and 2019 is reducing our debt and I couldn’t be more pleased with how we closed the year. In 2018, we generated record free cash flow while investing at near-record levels.”

AT&T reported latest operating earnings at its WarnerMedia unit and said it lost subscribers for its DirecTV Now streaming service in the fourth quarter.

At WarnerMedia, led by CEO John Stankey, the quarterly earnings contribution reached $2.7 billion. Fourth-quarter revenue reached $9.2 billion.

Meanwhile, AT&T said that its streaming service DirecTV Now lost subscribers in the fourth quarter, according to The Hollywood Reporter.

It said it ended 2018 with 1.6 million such subscribers, down from 1.86 million as of Sept. 30. The company also continued to lose traditional satellite TV subscribers at DirecTV.

"During the fourth quarter of 2018, including the impact of losses of 267,000 from DirecTV Now, total video subscribers decreased 658,000. DirecTV Now net adds included approximately 65,000 on free or substantially free trials," it said.

WarnerMedia is planning to launch, in the fourth quarter, its own streaming service, overseen by AT&T veteran Brad Bentley as general manager and executive vp for direct-to-consumer development at WarnerMedia.