Today, AT&T announced that A&T TV NOW lost a net 138,000 subscribers in the first quarter of 2020. The streaming service lost 219,000 subscribers in the previous quarter. This is the fourth consecutive quarter in which AT&T TV NOW saw a decline in subscriber numbers. This quarter, AT&T attributed the loss to “higher prices and less promotional activity.”
In total, AT&T lost 897,000 premium TV subscribers in the first quarter. That number includes DirecTV, U-Verse, and AT&T TV customers. Video revenue was down 8.4% to $7.4 billion, while broadband revenue rose 1.9% to $2.1 billion.
AT&T also saw a loss in broadband customers in the first quarter of 2020, with a 73,000 net loss. The loss was due to “competition in slower speed territories and loss of bundled video subscribers,” according to the financial report.
Overall, AT&T saw an increase in net income, up 11.8% to $4.578 billion. However, revenue at AT&T dropped 4.6% to $42.779 billion. The company estimates that coronavirus cost $605 million in revenue – including expected ad sales for WarnerMedia.
While coronavirus has impacted the company, AT&T says the pandemic isn’t stopping them from moving forward with new services.
“The COVID pandemic had a 5 cents per share impact on our first quarter. Without it, the quarter was about what we expected — strong wireless numbers that covered the HBO Max investment, and produced stable EBITDA and EBITDA margins,” said Randall Stephenson, AT&T Chairman and CEO.
“We have a strong cash position, a strong balance sheet, and our core businesses are solid and continue to generate good free cash flow — even in today’s environment. In light of the pandemic’s economic impact, we’ve already adjusted our capital allocation plans and suspended all share retirements,” Stephenson said. “As a result, we’re able to continue investing in critical growth areas like 5G, broadband and HBO Max, while maintaining our dividend commitment and paying down debt.”
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