Tags: at&t | investors | directv | subscriber | losses

AT&T Warns Investors of Heavy Q3 DirecTV Subscriber Losses

AT&T Warns Investors of Heavy Q3 DirecTV Subscriber Losses
(Dollar Photo Club)

Thursday, 12 October 2017 11:17 AM

AT&T will report heavy subscriber losses at DirecTV in its third-quarter earnings later this month, bleeding that the telco giant chalked up to heightened competition in the pay-TV arena and the wallop of the summer hurricane season.

In a Securities and Exchange Commission filing late Wednesday, AT&T said it would post a net loss of 90,000 traditional video subscribers for the quarter, offset by the addition of nearly 300,000 subscribers to its DirecTV Now streaming service. AT&T reports its third-quarter earnings on Oct. 24.

As MoffettNathanson analyst Craig Moffett observed, the net loss means DirecTV is losing about 390,000 traditional subscribers -- customers that had been paying at a higher rate than the low-cost DirecTV Now service. Moffett chalked it up to consumers moving away from the traditional big pay-TV bundle.

"It should be clear that DirecTV, like all of its cable peers, is suffering from the ravages of cord-cutting," Moffett wrote.

The analyst also noted that the steep decline in traditional subs means that it is "all but unthinkable" that AT&T will make an effort to acquire DirecTV's satellite TV rival Dish Network. "It is becoming increasingly clear that the wheels are falling off satellite TV," he wrote.

AT&T warned that the drop in traditional video subs will hurt its revenues and margins. Adjusted consolidated operating income for its entertainment group will be flat year-over-year.

© 2021 Thomson/Reuters. All rights reserved.


   
1Like our page
2Share
Companies
AT&T will report heavy subscriber losses at DirecTV in its third-quarter earnings later this month, bleeding that the telco giant chalked up to heightened competition in the pay-TV arena and the wallop of the summer hurricane season.
at&t, investors, directv, subscriber, losses
226
2017-17-12
Thursday, 12 October 2017 11:17 AM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved