AT & T Raises Revenue Forecast for Wireless Growth

AT & T Co., Ltd.

T -0.34%

He said core communications profits are increasing despite Hollywood’s shrinking footprint, emphasizing the decision to quit the entertainment business by the end of next year.

The media and telecommunications giant said it is focusing on continuing to expand its broadband business and mobile subscriber base while moving away from satellite and media production. Prior to its withdrawal, the company raised its full-year financial forecast. The company is currently expecting consolidated revenue growth of 2% to 3% from its previous target of approximately 1% growth.

May AT & T Spin off media brands— Including HBO, CNN, TNT, TBS, Warner Bros. Studios —

Discovery Co., Ltd.

This move follows the February contract Spin off a 30% stake in AT & T’s pay-TV unit While abandoning control of the business, it is called DirecTV at the time of closure.

In a phone call with an analyst, John Stanky, CEO, said, “We want to achieve strong withdrawal rates in both of these businesses. At that point, the right partner combination is It only extends to each success opportunity. ”

AT & T also has a lot of digital advertising business Xandr on the market The company announced on Wednesday that it would sell the rest. Satellite TV business in Latin America, Called Vrio, in Grupo Werthein, Argentina. The transaction, which is expected to close in 2022, was expected to incur $ 4.6 billion in accounting costs for AT & T.

AT & T has increased the number of wireless subscribers over the past year by hanging significant discounts on smartphones in exchange for long-term commitments and encouraging rivals.

Verizon Communications Co., Ltd.


T-Mobile US Co., Ltd.

Respond with your own promotion.

Jeff McElfresh, head of the company’s communications division, said: “We continue to focus on what our customers want and will stick to it as long as we get a positive response.”

Despite the high discounts, it helped AT & T record the net profit of 789,000 postpaid phone subscribers in the second quarter. Investors appreciate postpaid plans that charge customers for the service after it has been provided, as account owners tend to provide credible profits.

Verizon said Wednesday that it had acquired 275,000 postpaid phone customers in the last quarter. T-Mobile will report the results next week.

On the entertainment front, WarnerMedia’s HBO unit closed the quarter with 47 million domestic HBO and HBO Max subscribers, up from 44.2 million three months ago. These numbers include new HBO Max subscribers and customers who are paying for traditional HBO services, typically through cable distributors.

WarnerMedia revenue increased by approximately 31% in the last quarter, reflecting a partial recovery from the pandemic impact of the recovery in advertising sales. Entertainment companies also highlighted increased content sales and increased revenue from subscriptions as HBO Max grew.

May AT & T Decided to spin off the media brandTransition to a new publicly traded company with Discovery, including HBO, CNN, TNT, TBS and Warner Bros. Studios. Spin off a 30% stake in AT & T’s pay-TV unit While abandoning control of the business, it is called DirecTV at the time of closure. AT & T too Much of that digital advertising business, Known as Xandr, went on the market in 2020.

The company will be on Wednesday Sell ​​the remaining satellite TV business in Latin America, Called Vrio, in Grupo Werthein, Argentina. The transaction, which is expected to close in 2022, was expected to incur $ 4.6 billion in accounting costs for AT & T.

Overall net income attributable to AT & T is approximately $ 1.87 billion (17 cents per share) from $ 1.23 billion (17 cents per share) in the previous year when write-downs, severance pay and other accounting adjustments adversely affected earnings It has reached 21 cents per share). Total revenue was up 7.6% to $ 44 billion.

Net liabilities fell by nearly $ 1 billion from about $ 169 billion at the end of the previous quarter, the company reports. Chief Financial Officer Pascal Desroches said he hopes DirecTV’s stake sale will end next month and the company will begin to pay off more debt in the coming years.

“There’s a lot of turmoil around the company and in the popular media, but those who chose to really focus on what we did last year said,” This company is really focused and running. The future is much brighter than the past, “said Desloche.

AT & T also raised its full-year earnings guidance, calling for adjusted earnings per share growth in the low to mid-single digits. The company previously predicted that earnings per share would not change compared to 2020. We also raised our full-year free cash flow guidance by $ 1 billion to approximately $ 27 billion.

However, these forecasts do not take into account the pending sale of DirecTV shares. AT & T said the sale would return free cash flow to $ 26 billion in 2021 and reduce annual revenue by $ 9 billion from the income statement if the transaction closes in the coming weeks. Adjusted revenue will continue to grow as expected.

AT & T has become the third largest wireless network operator in the United States after T-Mobile US. Last year I was in second place By acquiring Sprint Corp.

Dish network Co., Ltd.

Through transactions mediated by the Department of Justice, progress has been made to build a fourth national system. Some of the cell towers are scheduled to go live later this year.

AT & T signed a contract earlier this month To carry dish cell phone network trafficBoost Mobile is included on the wireless network as both companies are looking to expand in the 5G domain or, in the case of Dish Network, enter the market.

Dallas-based AT & T is doubling its core network operations as it prepares to integrate WarnerMedia and Discovery next year. John Stanky, CEO, said the move would make the more cautious telecommunications investor base more satisfying while hiding off media companies pursuing more aggressive growth strategies abroad. He said it would make it possible.

This split also allows AT & T to reduce shareholder dividends. This cost about $ 15 billion last year.

WarnerMedia is in conflict with

Walt Disney Co., Ltd.

And others can accumulate the existence of streaming media Fit to global reach of

Netflix Co., Ltd.

That effort is complicated by the following well-funded technology companies:

Apple Co., Ltd.

And Co., Ltd.

We spend tens of billions of dollars annually on media content.

AT & T said it has reached 67.5 million HBO subscriptions worldwide, including overseas accounts. The company predicts that global subscribers will reach 70-73 million by the end of 2021 due to its expansion into Latin America and Europe.

Write to I drew Fitzgerald in

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AT & T Raises Revenue Forecast for Wireless Growth

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