Economy

AT&T Warns Of Lower Q3 Revenue, Pre-tax Profit On Hurricanes,Mexican Earthquakes

AT&T's Inc.'s (NYSE: T) shares fell on Thursday after a filing stating that third quarter earnings will be negatively impacted due to the natural disasters as well loss of video subscribers.

AT&T attributed the video losses to increased competition with other traditional pay-TV providers and streaming services, hurricanes and AT&T's stricter credit standards, according to the SEC filing. He said: "First, it should be clear that DirecTV, like all of its cable peers, is suffering from the ravages of cord-cutting".

"No one should have expected AT&T's video subscriber results to be good in Q3", analyst Craig Moffett of MoffettNathanson wrote in a research note. In a third-quarter media industry forecast released today, Doug Mitchelson of UBS said he expects pay-TV subscriptions overall to decline 0.9% in the quarter compared with the same period a year ago, even with the first and second quarters. DirecTV and Comcast are seeing and responding to the same secular pressures. It is reasonable to expect a weak quarter for the whole pay-TV industry.

The analyst also noted that the steep decline in traditional subs means that it is "all but unthinkable" that AT&T will make an effort to acquire DirecTV's satellite TV rival Dish Network.

AT&T is not the only pay-TV provider to point to a more competitive environment.

MoffettNathanson believes the weakness in AT&T's pay-TV numbers shines a new light on the spate of aggressive promotions at AT&T, notably that nearly all of them appear to be centred on bundling, with the benefit seemingly toward bolstering video metrics at DirecTV.

AT&T warned that the drop in traditional video subs will hurt its revenues and margins.



Like this

loading...
loading...

Latest


12 October 2017
Wal-Mart Stores, Inc. (NYSE: WMT)
Truepoint Inc. raised its position in Wal-Mart Stores Inc (NYSE: WMT ) by 1.6% during the first quarter, Holdings Channel reports. The firm owned 31,759 shares of the retailer's stock after buying an additional 4,141 shares during the period.

12 October 2017
JCPenney hiring 900 workers in Missouri for holiday season
JCPenney offers seasonal associates a full associate discount up to 25 percent, as well as flexible holiday scheduling. The Plano, Texas-based department store operator announced last month it plans to hire 1,300 seasonal employees in MI .

12 October 2017
Rice Midstream Partners LP (RMP): Tracking the Technicals
The fund owned 137,553 shares of the pipeline company's stock after buying an additional 21,668 shares during the period. Signaturefd Lc has invested 0.06% in Antero Midstream Partners LP (NYSE:AM). 8,108 are held by Us National Bank De.

12 October 2017
Pokémon Ultra Sun/Moon | Necrozma, Ultra Beasts, everything we know
Dusk Mane Necrozma (which occurs when Necrozma absorbs Solgaleo) will have access to a Z-Move called "Searing Sunraze Smash". When this form of Necrozma takes control of the Legendary Pokemon Lunala (Moon), its steals its light energy by force.

12 October 2017
Delhi Metro Price Hike: All You Need To Know
Metro fares are revised to help the public transporter meet operational costs and provide world-class service, transport sector experts say.

12 October 2017
Q3 2017 EPS Estimates for Time Warner Inc. Raised by Analyst (TWX)
It increased, as 41 investors sold TWX shares while 376 reduced holdings. 73 funds opened positions while 283 raised stakes. Cowen and Company restated a "hold" rating and set a $107.50 price target on shares of Time Warner in a report on Thursday.

12 October 2017
Apple joins 75 companies urging US Supreme Court for gay employees' protections
The brief also notes that approximately 10 million adults in the United States, or 4.1 percent of all adults, identify as LGBT. Supreme Court to address whether a law banning sex discrimination in the workplace provides protections to gay employees.

12 October 2017
Osinbajo admits approving NNPC contracts
But the NNPC dismissed the allegations as "baseless", maintaining that it followed due process in awarding contracts. The post BREAKING: Osinbajo Admits Approving Oil Contracts For NNPC appeared first on Channels Television .

12 October 2017
California wildfires grew only a little overnight
Pimlott gave a county-by-county breakdown of the grim toll: 13 dead in Sonoma, six in Mendocino, and two each in Napa and Yuba. Eighty firefighters comprise the strike teams, and another eight individuals have been sent to help out in various other roles.

12 October 2017
Nubia Z17S launched in China: Price, specs and more
The smartphone is available with either 6GB of LPDDR4X RAM and 64GB of UFS 2.1 memory, or 8GB of RAM and 128GB of storage space. The smartphone is driven by an octa-core Qualcomm Snapdragon 835 processor, clocked at 2.45GHz and topped with Adreno 540 GPU.