AT&T Loses TV Subscribers, on Track to Acquire Time Warner
The company fell just shy of predictions for revenue, reporting $39.4 billion as opposed to the $40.1 billion expected by analysts.
AT&T said Tuesday that revenue at its Entertainment Group slipped to $12.6 billion in the most recent quarter, down from $12. 7 billion a year earlier, as U-verse lost 233,000 subscribers.
DirecTV, though, remained flat at 21 million subscribers and DirecTV Now, the recently launched online service, helped to offset defections from U-verse, though the company did not disclose specifics.
AT&T is in the midst of acquiring Time Warner for $85 billion, and the telecommunications company said Tuesday that it expects approval from the U.S. Department of Justice this year.
In the first quarter, AT&T spent $41 million related to its pending Time Warner acquisition down from the $47 million that it spent in the quarter before.
Overall, AT&T said it earned $3.47 billion in the first quarter and 74 cents per share, after items, which is in line with the expectations of analysts.
The company, though, fell just shy of predictions for revenue, reporting $39.4 billion as opposed to the $40.1 billion expected by analysts.
The stock, though, reacted favorably to Tuesday's earnings report, rising 1 percent in afterhours trading to $40.18.
At the closing bell, AT&T had a market capitalization of $245.3 billion compared with Time Warner's $77.5 billion.
AT&T's revenue shortfall is in part owed to losing 66,000 postpaid mobile phone subscribers during the quarter.