AT&T takes a pounding with 1MN TV subs losses in Q1

AT&T takes a pounding with 1MN TV subs losses in Q1

AT&T takes a pounding with 1MN TV subs losses in Q1

AT&T reported first-quarter revenues down 4.6 percent to United States dollars 42.8 billion, as its WarnerMedia division suffered from the Covid-19 outbreak's impact on the film and TV industry and the operator continued to lose pay-TV subscribers.

The company said that the negative impact of the pandemic on profit before interest, tax, depreciation and amortisation (EBITDA) was $435 million.

The company attributed a $600 million decline in revenue to lost advertising sales resulting from the postponement of live sports such as March Madness and to lower wireless equipment sales.

To boost liquidity, the company entered into a $5.5 billion loan agreement, adding to debt that has been a point of contention for its investors. The company added 163,000 postpaid wireless phone customers while gaining a net 27,000 overall postpaid subscribers.

AT&T has announced distribution agreements (including YouTube TV and Charter) for HBO Max that cover almost 50% of the HBO embedded wholesale base and more than two-thirds of the retail base.

As the COVID-19 crisis continues, AT&T has had to make adjustments to its operations. "It is clear that the lockdown simply stopped retail activity in its tracks".

WarnerMedia was the division worst hit, reporting a drop in revenue to $7.4 billion from $8.4 billion a year earlier.

But as Ars Technica reports, the first-quarter results showed that AT&T's "string of massive [premium TV] customer losses" is continuing, with traditional pay TV services, including DIRECTV and the newer streaming option AT&T TV, sseeing a combined net loss of 897,000 subscribers. The closing of theaters and halting of production hurt its media business.

Max has launched a new venue ahead of the streaming platform launch on May 27, welcoming viewers to a venue where their favorite characters and franchises intersect.

On Tuesday, Netflix Inc reported a surprisingly big surge in new subscribers but warned the second half of the year would be marked by slower growth as stay-at-home orders end.

Revenue came in at $ 42.8 billion, which was below the consensus view of Wall Street analysts, who were looking for $ 44.2 billion.

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