WarnerMedia, AT&T Report Earnings

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AT&T took fourth-quarter charges of $780 million for 'the impairment of production and other content inventory' at WarnerMedia, as well as the shutdown of cinemas and 'the hybrid distribution model for our 2021 film slate.' Details:

Telecom giant AT&T on Wednesday reported its fourth-quarter results, including a loss of 617,000 premium TV subscribers at DirecTV, U-Verse and A&T Now and the loss of 27,000 subscribers at its AT&T TV Now streaming service.

It also includes"noncash impairment charges of $15.5 billion resulting from changes in our management strategy and our evaluation of the domestic video business," the firm said."These changes, including our decision to operate our video business separately from our broadband and legacy telephony operations, required us to identify a separate video reporting unit and to assess both the recoverability of its long-lived assets and any assigned goodwill for impairment.

WarnerMedia earnings for the quarter included results for HBO and streaming service HBO Max, which gained subscribers in the final quarter of 2020, the Turner networks, including CNN, which benefited from the election year, and Warner Bros. The studio in a controversial gamble on Christmas Day releasedin a hybrid strategy, which included HBO Max in the U.S. and cinemas where they were open.

 

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