AT&T Details $830M Pandemic Earnings Hit for Second Quarter, Loses 886,000 Premium TV Subs

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HBO Max is 'on track' to hit the targets outlined by management, AT&T CEO John Stankey says on the earnings call without detailing a subscriber figure. He also says the company is looking to become 'more agile and efficient.' Details:

Telecom giant AT&T on Thursday reported its second-quarter financials, the first set of results fully affected by the novel coronavirus pandemic.

AT&T touted the "successful launch of HBO Max with strong engagement," but didn't immediately detail figures beyond disclosing that combined HBO and HBO Max U.S. subscribers grew 5 percent from the 34.6 million as of the end of 2019 to reach 36.3 million at the end of June. AT&T also reported WarnerMedia's revenue and earnings for the second quarter, highlighting a $1.5 billion revenue impact, but also some lower expenses, including for sports content.

Stankey on the call said the company was operating under the assumption that the virus impact would be around "for some time" and "significant access" and other needs "will be the business norm well into next year.” Stankey also said debt reduction remains in focus along with a "disciplined" review of non-core assets. He also highlighted that the firm remained committed to their Warner Bros' second-quarter revenue fell amid "the absence of theatrical releases and lower games and other revenues, partially offset by higher television revenues, including internal sales to HBO Max that are eliminated upon consolidation." Warner Bros.

 

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