AT&T Revenue Rises as Wireless Unit, HBO Add Customers
April 22 2021 - 7:47AM
Dow Jones News
By Drew FitzGerald
AT&T Inc. piled on more cellphone users, fiber-optic
internet customers and HBO viewers during the first quarter,
showing the media-and-telecom conglomerate's focus on growth as the
economy starts to roar back after a year of coronavirus-related
pressure.
The Dallas company reported 44.2 million domestic HBO and HBO
Max subscribers, up from 41.5 million three months earlier, as its
media division sought to gain on rivals like Netflix Inc. and Walt
Disney Co. That figure included viewers who signed up for the
company's new online streaming video service as well as those with
older subscriptions to HBO through a cable-TV provider.
In the U.S. wireless business, AT&T's core profit engine,
the company added 595,000 postpaid phone subscribers, a highly
valued category of customers who are billed for monthly service
after-the-fact. The carrier also posted a net gain of 207,000
prepaid phone subscribers.
Rival Verizon Communications Inc. on Wednesday reported a net
loss of 178,000 postpaid phone connections over the same period.
T-Mobile is slated to report its first-quarter results next
month.
Overall, AT&T reported a profit of about $7.5 billion, or
$1.04 a share, up from $4.6 billion, or 63 cents a share, a year
earlier. The most recent earnings result benefited from a large
on-paper actuarial gain on the value of its employee-benefit plans.
Total revenue rose 2.7% to $43.9 billion.
The company's reported net debt jumped to about $169 billion,
close to its level two years ago following the Time Warner buyout
that turned AT&T into a media heavyweight. The latest debt
increase stemmed from spending on the Federal Communications
Commission's recent auction of C-band spectrum licenses, a key
resource for wireless companies planning to upgrade their services
to support high-speed fifth-generation, or 5G, network
standards.
Verizon spent the most in the FCC auction, committing $45.5
billion to secure the valuable airwaves. AT&T pledged $23.4
billion for its licenses. Clearing existing users from the spectrum
bands and upgrading network gear will cost the companies billions
of dollars more.
AT&T said Thursday that its debt levels will decline in the
coming years as asset sales and revenue growth whittle down its
obligations. The company also affirmed its commitment to sustaining
its dividend at current levels.
Write to Drew FitzGerald at andrew.fitzgerald@wsj.com
(END) Dow Jones Newswires
April 22, 2021 07:32 ET (11:32 GMT)
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