AT&T revenue falls short of estimates on satellite TV subscriber loss

(Reuters) – AT&T Inc missed fourth-quarter revenue estimates on Wednesday, as another loss in DirecTV subscriptions overshadowed a better-than-expected sign ups in monthly bill paying customers.

Revenue from the entertainment segment, that includes satellite TV provider DirecTV, fell 6.1% to $11.23 billion.

The company said it added 229,000 net new subscribers. Analysts had estimated the company to add 145,000 subscribers, according to research firm FactSet.

AT&T has been losing satellite TV consumers as traditional television concedes to streaming platforms like Netflix Inc (NASDAQ:) and Amazon.com (NASDAQ:) Inc’s Prime. To counter that, it plans to launch its own streaming platform HBOMax in May.

AT&T announced a three-year cost-cut plan in October, which included asset sale worth up to $10 billion to pay off its debt, bowing to pressure from activist investor Elliott Management that questioned its spree of expensive acquisitions.

Total operating revenue in the quarter ended Dec. 31 fell to $46.82 billion from $47.99 billion a year earlier. Analysts were expecting $46.96 billion, according to IBES data from Refinitiv.

The WarnerMedia segment, which includes premium TV channel HBO, reported revenue of $8.92 billion, missing analysts’ estimates of $9.03 billion.

Net income attributable to AT&T fell to $2.39 billion, or 33 cents per share, from $4.86 billion, or 66 cents per share, a year earlier.

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