Tuesday, 23 January, 2018

AT&T says hurricanes, earthquakes hurt third-quarter results

Melinda Barton | 13 October, 2017, 07:57

In pre-released select video subscriber trends for the third quarter of 2017, AT&T estimates it will add 300,000 DirecTV Now subscribers for the period, beating analysts' expectations.

AT&T, the parent company of DirecTV, will report losing 90,000 video customers when it discloses quarterly financial results this month due in part to cord-cutting, the telecommunications company said Wednesday in a regulatory filing.

The company's shares fell marginally in extended trading on Wednesday.

AT&T revealed damage to its network and other property plus the costs to restore services, along with revenue declines from waived charges, would shave nearly US$90mln from third quarter consolidated revenues, while reported pre-tax earnings would take a US$210mln hit, equivalent to around two cents a share.

The company confirmed prior full-year targets of mid-single digit adjusted earnings growth, adjusted consolidated operating margin expansion, roughly $22 billion in capital expenditures, and free cash flow in the low $18 billion range.

AT&T says it expects further reductions spilling into Q4.

AT&T also said it lost about 90,000 US video subscribers in the quarter due to intense competition in traditional pay TV markets as well as the impact of the recent hurricanes.

The telecom giant, which is about to finalize its $85 billion acquisition of, also blamed the subscriber losses on the natural disasters, but said some of it was competition as skinny bundles and new pay-TV schemes proliferate.

AT&T will release its third quarter earnings on Tuesday, Oct. 24.