AT&T keep FY guidance, despite decline in video subscribers during Q3

AT&T filing: Natural disasters hitting earnings; DirecTV Now at 300K adds

The operator anticipates impacts from the several hurricanes during the period, as well as earthquakes in Mexico, to decrease third quarter revenue by $90 million. And, oh, by the way, they added: 90,000 video subscribers disappeared in the period for reasons having nothing to do with natural disasters. "Damage to our network and other property, costs to restore services, and revenue declines from waived charges will decrease our reported third-quarter 2017 consolidated revenues almost $90 million and our reported pre-tax earnings about $210 million, or $0.02 per diluted share".

In the filing, AT&T reiterated its third quarter guidance and lowered it from previously.

"We expect further reductions in the fourth quarter as we continue to assess damage to our network and fully restore service", the company said.

The video net losses were driven by heightened competition in traditional pay TV markets and over-the-top (red button) services, hurricanes and stricter credit standards.

Along with the damages by the hurricane, AT&T also expects a loss of subscribers in the quarter. The carrier still reiterated its full-year 2017 guidance for mid-single digit adjusted earnings growth, adjusted consolidated operating margin expansion, capex of about United States dollars 22 billion, and free cash flow at the low end of the USD 18 billion range. AT&T shares were down over 4 percent on Thursday during trading hours.

The mobile network operator continued to expand its post-paid smartphone base, despite seeing nearly 900,000 fewer handset equipment upgrades than in the year-ago third quarter.

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