AT&T Hits Q2 Earnings Targets As WarnerMedia Gains Offset Pay-TV Losses

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AT&T reported second-quarter financial results that met Wall Street expectations, with earnings per share of 89 cents and revenue of $45 billion. WarnerMedia revenue increased 5.5% to $8.4 bill…

Now, the internet-delivered TV bundle launched with great fanfare in 2016, continued to backslide in the quarter, losing 168,000 subscribers. Including satellite and cable systems, total video subscriber losses reached 778,000.It has been a little more than a year now since the official close of AT&T’s $81 billion acquisition of Time Warner, though a federal legal challenges did not end until February of this year.

The company’s pay-TV platforms, including DirecTV, DirecTV Now and U-verse, have been locked in a carriage dispute with CBS for the past several days. A separate impasse with Nexstar has kept more than 100 local TV stations owned by Nexstar dark on AT&T systems since early July. WarnerMedia, meanwhile, has been aggressively remaking itself to remove longstanding silos between business units and also preparing to launch an ambitious streaming service by spring 2020. Few details have been released about the service other than its name, HBO Max, and its senior executive team.“We’re halfway through the year and on track to deliver on all our 2019 priorities,” he said in the earnings release.

 

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