Economy

AT&T Shares Rise More Than 2% As Company Beats Earnings Expectations

AT&T Shares Rise More Than 2% As Company Beats Earnings Expectations”

Analysts polled by FactSet expect AT&T to post 1.056 million net customer additions. Following the release of the earnings report, the stock was up 2% at $37.00 in the after-hours trading session.

Verizon in February reintroduced an unlimited data plan for the first time in more than five years, and other carriers have since then sweetened their own offers.

AT&T's revenue from its "entertainment group" was flat at $12.7 billion, with total video revenue up 2.1%, while broadband revenue was down "slightly".

"Perhaps the biggest impact is on wireless churn", he said, referring to the rate of customer defections.

The company's churn level was its best ever in the post-paid phone division, it said, at 0.79%.

AT&T lost 89,000 USA phone subscribers who pay a monthly bill in the quarter, its most lucrative customers.

The company lost 156,000 satellite subscribers and another 195,000 subscribers of the video U-verse service. In the latest period, AT&T said DirecTV Now added 152,000 subscribers.

Video subscribers, however, declined 199,000 in the most recent quarter, although company officials said that streaming service DirecTV Now, continues to pick up subscribers helping to stem the losses. The telecom giant said that it had $0.79 in earnings per share (EPS) and $39.8 billion in revenue, compared with consensus estimates from Thomson Reuters that called for $0.74 in EPS and $39.83 billion in revenue.

Net income attributable to AT&T rose to $3.9 billion, or 63 cents per share, in the second quarter ended June 30, from $3.4 billion, or 55 cents per share, a year earlier.

Already the biggest pay-television operator in the US with its acquisition of satellite company DirecTV, AT&T is looking to add Time Warner to its fold, a pricey deal that would give the Dallas company such properties as CNN, HBO and the Warner Bros. film and TV studio.



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