AT&T Beats Earnings Estimates, Spends $78M in Quest for Time Warner

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AT&T chairman and CEO Randall Stephenson

"We continue to expect the Time Warner deal to close by year-end and further transform the company," said AT&T CEO Randall Stephenson.

AT&T, which is trying to get regulatory approval to purchase Time Warner for $85.4 billion, said Tuesday it surpassed the expectations of analysts with its second-quarter earnings.

The telecom company said it spent $78 million in the quarter, furthering its quest to acquire Time Warner, and $119 million so far this year.

"We continue to expect the Time Warner deal to close by year-end and further transform the company," said AT&T CEO Randall Stephenson.

AT&T earned 79 cents per share while analysts expected 73 cents and revenue came in at $39.8 billion, exactly what analysts had predicted. Shares of AT&T, which finished about flat, were up 3 percent after the closing bell, when quarterly earnings were released.

The telecom company's entertainment segment, where DirecTV resides, posted $12.7 billion in revenue, down slightly from a year earlier. 

The company lost 156,000 satellite subscribers and another 195,000 subscribers of the video U-verse service. The new digital video service, though, called DirecTV Now, added 152,000 subscribers to reach nearly 500,000 customers.

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