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AT&T: 90,000 Video Subs Lost in Q3

12 Oct, 2017 By: Erik Gruenwedel



AT&T doesn’t release quarterly earnings until Oct. 24, but that didn’t stop the telecom giant from issuing a warning about those third-quarter results. The media company said it lost 90,000 video subscribers in the fiscal period ended Sept. 30.

The telecom said it added almost 300,000 DirecTV Now subs. DirecTV Now is a standalone online TV service launched last December and priced from $35.

The company cited ongoing competition from rival over-the-top video services undermining traditional pay-TV, in addition to effects from multiple hurricanes and an earthquake in Mexico.

“The decline of traditional video subscribers negatively impacts our entertainment group revenue and margins, resulting in an adjusted consolidated operating income margin that will be essentially flat versus the year-ago third quarter,” AT&T said in an Oct. 11 regulatory filing.

“Damage to our network and other property, costs to restore services, and revenue declines from waived charges will decrease our reported third-quarter 2017 consolidated revenue nearly $90 million and our reported pre-tax earnings about $210 million.”

 

 


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