AT & T Raises Revenue Forecast for Wireless Growth

AT & T Of a corporation

T -0.04%

Second-quarter revenue increased 7.6% due to new subscribers to mobile services, improving the annual financial outlook.

The media and telecommunications giant said it is focusing on continuing to expand its broadband business and mobile subscriber base, its core profit engine. The company is currently expecting consolidated revenue growth of 2% to 3% from its previous view of growth of about 1%.

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, encouraging rivals

Verizon Communications Co., Ltd.


T-Mobile US Co., Ltd.

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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 brand— 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. 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 negatively impacted 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. The company said it expects DirecTV’s stake sale to end within the next few weeks and allow it to repay more debt in the coming years.

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AT & T Raises Revenue Forecast for Wireless Growth

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