Tech

AT & T Wireless wins dwarf shrink media business

AT & T Ltd

NS 1.25%

Despite the continued growth of the core wireless business, in the third quarter we cut out a slimmer profile in the first phase of a series of entertainment sales.

The Dallas company spun off its DirecTV business as mobile phone customers increased significantly in the September quarter, but domestic subscribers to HBO services declined.

AT & T posted a net profit of 928,000 postpaid telephone connections. This is an important number for investors to monitor contractual subscriber growth for signs of overall business strength. The company has also added 249,000 prepaid phone connections.

rival

Verizon Communications Ltd

VZ 2.41%

On Wednesday, a net profit of 429,000 postpaid phone connections was reported.Its relatively small prepaid phone business could grow even larger with regulatory agencies Approve pending purchases TracFone from América Móvil SAB, Mexico.

T-Mobile US Ltd

TMUS 2.85%

Quarterly financial results will be posted on November 2.

Verizon reported a net profit of 429,000 postpaid phone connections.


Photo:

David Paul Morris / Bloomberg News

T-Mobile and Sprint Corp. With the 2020 merger, the wireless business has been reorganized into a three-player market, with operators having less way to plunder each other’s customers. AT & T has expanded its wireless base by offering customers significantly discounted smartphones in exchange for long-term efforts. Tactical rivals copy to varying degrees..

AT & T’s overall quarterly revenues were down about 5.7% compared to a year ago when DirecTV, a large and shrinking satellite brand that was straining its performance, was still in operation. Excluding that impact, the remaining companies’ revenues increased 4.7% to $ 38.07 billion.

AT & T has abandoned 30% stake and operational control US pay-TV business into joint venture In August, we partnered with private-equity fund TPG to distort results throughout the September quarter.

DirecTV’s asset sale was the first in a series of transactions this year, moving the phone giant away from the media business to its core mobile and fiber optic services. The sale of the Latin American pay-TV business is awaiting regulatory approval, but the biggest of these sales is —WarnerMedia Unit Spin-off— The store is scheduled to close by the middle of next year.

While waiting, WarnerMedia’s flagship product, the HBO Max service,

Amazon.com Of a corporation

Streaming platforms in the last quarter highlight more volatile returns in the sector. The business closed in September, with 45.2 million HBO members in the country, down from 47 million three months ago. The total includes additions to the HBO Max service.

Worldwide subscriptions to HBO Services increased from 67.5 million at the end of the previous quarter to 69.4 million. AT & T said it expects to reach its year-end target of 70 to 73 million HBO subscribers.

rival

Netflix Ltd

As a viewer, we added 4.4 million memberships in the third quarter Flocked to the streaming platform New works such as popular series and “Squid Game” are back. Netflix’s total paid global subscriber base totals 213.6 million, primarily due to new additions from outside the United States.

WarnerMedia’s film and television operations still contributed to parental profits. Overall revenue for this sector increased 14% to $ 8.44 billion. This is underpinned by global subscription acquisition and licensing agreements. Revenue from the US wireless segment was up 7% to $ 19.14 billion, while revenue from the business wired segment was down 5.2% to $ 5.94 billion.

Overall, third-quarter earnings from AT & T surged from $ 2.82 billion (39 cents per share) in the year-ago quarter to $ 5.92 billion (82 cents per share). Reported revenues included gains on the sale of assets, an improvement over the previous year’s results, which were depressed by accounting costs.

The company said it expects adjusted profits for the whole year Reach the upper limit of the year-end target, Excluding pay-TV businesses that are currently split.

AT & T’s share price, which fell this year, rose about 1% in early trading to $ 26.

Write in I drew Fitzgerald in andrew.fitzgerald@wsj.com

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AT & T Wireless wins dwarf shrink media business

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