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DirecTV additions unable to offset Uverse outflow during third quarter.
AT&T on Saturday reported solid third-quarter revenue and earnings growth, but mobile subscriber growth slowed in North America and the company reported its sixth straight quarter of video customer losses.
Net additions of 323,000 DirecTV customers in the three months to 30 September were offset by the loss of 326,000 U-verse TV subscribers. A small decline that nonetheless serves to highlight the rationale behind AT&T’s proposed $85.4 billion acquisition of content giant Time Warner, also announced on Saturday.
AT&T also reported slowing growth in branded mobile customers in the U.S., adding 325,000, compared to 489,000 in the same quarter a year ago and 437,000 in the prior quarter. Postpaid additions came in at 21,000, while prepaid made up the remaining 304,000.
The company ended the quarter with 40.41 million branded mobile connections, up from 40.25 million in Q3 2015. However, when reseller subscriptions and connected devices are included, the figure comes in at 53.91 million, down from 54.85 million a year ago. This is due to a decline of 316,000 reseller customers, offset slightly by the addition of 41,000 connected devices.
Meanwhile, AT&T’s Mexican wireless operation added 743,000 customers, consisting of 163,000 postpaid and 606,000 prepaid subscribers, giving it a total of 10.70 million.
On the financial side, revenue increased 4.6% year-on-year to $40.89 billion (€37.56 billion), as the contribution from DirecTV helped to offset declining revenue at its consumer mobility and business solutions units.
Operating income jumped to $6.41 billion from $5.92 billion a year ago, while net income attributable to AT&T increased to $3.33 billion from $2.99 billion.
