AT&T revenues sees cordless development in Q2, however video side continues to battle

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DirecTV Now continues to underperform for AT&T. 

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AT&T satisfied expert expectations in its most current revenues report, even as battles continued around the business’s U-Verse and DirecTV video system. 

The innovation giant included 335,000 phone users, the bulk of them beginning the business’s pre-paid side. AT&T states it included 72,000 postpaid users, the more rewarding clients that register for its conventional regular monthly cordless service. By contrast, in the very first quarter of the year, the business included 179,000 phone users, of which 80,000 were postpaid. 

Utilizing its release of FirstNet, a cordless network for very first responders, AT&T states it has actually had the ability to update its conventional cordless network and get it prepared for 5G, which it prepares to make commercially offered across the country throughout the very first half of 2020. 

“The wireless side of the house, we’re feeling more and more confident every day,” stated Randall Stephenson, AT&T’s chairman and CEO in a call with financiers. Stephenson states the business has actually developed out 60% of its FirstNet network so far.

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The growth in mobile comes as its more premium DirecTV and AT&T U-Verse continue to shed users for its traditional satellite, cable and streaming DirecTV Now services. AT&T said it lost 778,000 premium video users, with an additional 168,000 users disconnecting from DirecTV Now as the company rolled out fewer promotions. 

AT&T warns that the losses could continue through the rest of the year as it still has 1 million users locked on two-year pricing promotions. The company is touting a new, forthcoming over-the-top streaming service called AT&T TV, set for trial in the third quarter of the year, as well as next spring’s HBO Max launch, as options to turn its video ship around. 

Read moreDirecTV Now vs. YouTube TV vs. Sling TV vs. Hulu and more

Stephenson says HBO Max will have live sports, touting the NBA and MLB as two potential examples. While it is unclear exactly what AT&T TV will look like and how it will compare to the company’s other streaming services, Stephenson told investors that the company “will put our shoulder and our muscle behind AT&T TV.”

WarnerMedia, the division that houses the Time Warner properties AT&T acquired last year, including Turner TV stations and HBO, had revenues of roughly $8.4 billion. 

Earnings per share were 89 cents for the quarter, exactly matching the estimates from analysts polled, according to Yahoo Finance. Revenues came in at $45 billion, slightly higher than the $44.85 billion analysts anticipated.