AT&T profit beats estimates on strong streaming growth
AT&T has prioritized its fiber internet business as an area for growth, and said it added 271,000 net new customers during the quarter. Total consolidated revenue was $41.0 billion in the quarter ended Dec. 31, beating analysts' estimates of $40.44 billion, according to Refinitiv Data.
AT&T Inc beat analysts' estimates for fourth-quarter profit and revenue on Wednesday amid solid growth in its streaming platform HBO Max and a rise in wireless customers, sending shares higher in premarket trading. Revenue at WarnerMedia, which houses premium TV channel HBO and streaming service HBO Max, rose 15.4% to $9.9 billion in the quarter.
The growth at WarnerMedia comes as AT&T works to unwind its media investments and refocus on its original business of providing phone and internet services. The Dallas-based company said it now expects its deal to merge WarnerMedia with Discovery Inc to close in the second quarter. The company's shares were up about 2% in trading before the market opened.
HBO and HBO Max together added 4.4 million subscribers during the quarter, drawing viewers with releases such as "Dune" , "The Matrix" and the newest season of the TV show "Succession" . The company signed up 884,000 net new phone subscribers who pay a monthly bill in the quarter, in line with its preliminary result of 880,000 released earlier this month.
Rival carrier Verizon on Tuesday reported a better-than-expected 558,000 subscriber additions in its latest quarter. AT&T has prioritized its fiber internet business as an area for growth and said it added 271,000 net new customers during the quarter.
Total consolidated revenue was $41.0 billion in the quarter ended Dec. 31, beating analysts' estimates of $40.44 billion, according to Refinitiv data. Excluding items, AT&T earned 78 cents per share, above analysts' average estimate of 75 cents.
Including WarnerMedia and Xandr, AT&T now expects 2022 revenue growth in the low-single-digit percentage range. The company expects annual adjusted earnings of between $3.10 and $3.15 per share in 2022, short of analysts average estimate of $3.21.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)