Skip to main content

AT&T rakes in $40.5B in revenue but loses video subscribers in Q2

att broadband expansion news new at amp t logo in dallas  tx
Wikipedia Commons
AT&T unveiled its Q2 2016 earnings today, and though the company met Wall Street expectations in some areas, it fell short in others.

Starting with the overall picture, AT&T reported earnings of $3.4 billion, which equate to 72 cents a share when adjusted for merger costs with DirecTV and other expenses. The carrier also brought in $40.5 billion in revenue, with the figures meeting Wall Street expectations of 72 cents a share and revenue of $40.63 billion, according to Fortune.

The figures compare favorably to Q2 2015, when AT&T reported a net income of $3.08 billion and $33.02 billion in revenue.

AT&T also added 1.4 million new wireless subscribers, 257,000 of which were postpaid customers. Overall, the carrier ended its June 2016 with a total of 77.3 million wireless subscribers, with a churn rate — this is a figure that informs investors the rate of monthly cancellations — of 0.97 percent for post-paid customers, the second-lowest churn rate AT&T has ever reported.

Where AT&T took some damage is with video subscribers, with the carrier losing 49,000 during the second quarter. Broken down, AT&T added 342,000 DirecTV subscribers, but lost 391,000 U-Verse customers as the company looks to double down on its DirecTV acquisition. Overall, 80 percent of AT&T’s 25.3 million television subscribers are on DirecTV, with AT&T chief financial officer John Stephens saying the second quarter is usually a slow one in the pay-for-TV business.

“We would expect to see improvements on both sides,” said Stephens, though the executive also mentioned AT&T’s upcoming DirecTV Now streaming service, which he said will impress folks who prefer streaming over subscribing to a video service.

Furthermore, the carrier raked in 74,000 IP broadband subscribers, down from the 186,000 it added during the first quarter, with total broadband revenues rising 7 percent. Unfortunately for AT&T, its 14.2 million broadband subscribers are down from its 14.4 million total during the first quarter.

Hopefully for AT&T, its financials will compare favorably to Verizon’s and T-Mobile’s, with the latter two companies set to release their numbers sometime soon.

Editors' Recommendations

Williams Pelegrin
Former Digital Trends Contributor
Williams is an avid New York Yankees fan, speaks Spanish, resides in Colorado, and has an affinity for Frosted Flakes. Send…
Fujifilm’s new Instax Pal camera is fun, but pricey
Fujifilm's Instax Pal camera.

INSTAX Pal Promotional Video "Making small moments feel big"/FUJIFILM

Fujifilm has just unveiled the Instax Pal camera, a diminutive digital device targeted at teens who might want to print their pictures, too.

Read more
Do iPhone 14 cases fit the iPhone 15? There’s an interesting answer
Speck Presido2 cases for the iPhone 15.

The iPhone 14 and iPhone 15 series have identical display sizes, but there are slight variations in their total dimensions due to design changes. This has led to a common question of whether the cases designed for iPhone 14 would fit the iPhone 15 models. The answer to this question is not straightforward and depends on whether you are looking for a perfect or a reasonable fit.

The iPhone 15 series consists of four models, just like the iPhone 14 series. These are the 6.1-inch iPhone 15, 6.7-inch iPhone 15 Plus, 6.1-inch iPhone 15 Pro, and 6.7-inch iPhone 15 Pro Max. The prices of the iPhone 15 series are the same as the previous models, and they come with several improvements. The iPhone 15 Pro and iPhone 15 Pro Max are made of titanium, while the iPhone 14 Pro and iPhone 14 Pro Max have stainless steel bodies. Additionally, the iPhone 15 and iPhone 15 Plus now have the Dynamic Island for the first time.

Read more
Don’t buy the iPhone 15 — 5 reasons to wait for the iPhone 16
iPhone 15 Pro Cameras.

Apple revealed a slate of new products at its recent Wonderlust event, including the new iPhone 15 lineup, Apple Watch Series 9, and Apple Watch Ultra 2. We also got a minor update for the AirPods Pro in the form of a new USB-C charging case to align with the iPhone ditching Lightning.

This year, there’s actually a lot to love about the iPhone 15, as it’s a much bigger upgrade than its predecessor. We now have the Dynamic Island across the entire lineup, USB-C charging, a 48MP camera, and a beautiful display that reaches double the brightness of the iPhone 14 with 2,000 nits. It also packs in the A16 Bionic chip that launched with the iPhone 14 Pro.

Read more