AT&T added greater than 5 million home wi-fi internet provides in Q3
In the course of the AT&T 2020 Q3 earnings name, the latest quarter was summed up as follows: sturdy connectivity outcomes; enterprise transformation on observe; and improved money stream. Digging deeper into these assessments reveals that the corporate noticed stable wi-fi and HBO subscriber progress, in addition to fiber broadband additions.
Extra particularly, AT&T’s consolidated revenues for the third quarter totaled $42.3 billion. In wi-fi, it says it noticed 5 million home internet additions, of which round 1 million have been postpaid internet additions, together with 645,000 postpaid telephones. Pay as you go internet additions have been 245,000, of which 131,000 have been pay as you go telephones. The corporate’s AT&T Fiber internet provides and whole broadband internet provides each reached a report excessive of 357,000 and 158,000, respectively. Additional, the corporate reported that whole home HBO and HBO Max subscribers topped 38 million, exceeding the year-end goal of 36 million. Complete subscribers worldwide was 57 million.
“We delivered a stable quarter with good subscriber momentum in our market focus areas of connectivity and software-based leisure,” mentioned John Stankey, AT&T CEO. “Wi-fi postpaid progress was the strongest that it’s been in years with a million internet additions, together with 645,000 telephones. We added greater than 350,000 fiber broadband clients and are on observe to develop our fiber base by greater than 25% this 12 months. And we proceed to develop and scale HBO Max, with whole home HBO and HBO Max subscribers topping 38 million — effectively forward of our expectations for the complete 12 months.”
In actual fact, the sturdy quarter resulted in an up to date steerage, with the corporate now anticipating 2020 free money stream of $26 billion or increased, with a dividend payout ratio within the excessive 50s%.
“Our sturdy money stream within the quarter positions us to proceed investing in our progress areas and pay down debt,” Stankey commented.
AT&T additionally continues to count on gross capital funding within the $20 billion vary in 2020.
Regardless of the constructive outcomes, the impression of the COVID-19 pandemic was felt throughout all companies, significantly WarnerMedia as a result of halt in film manufacturing. AT&T added that many of those movie tasks have picked up once more. AT&T additionally took a income hit in home wi-fi service revenues, primarily from decrease worldwide roaming.
Nevertheless, these, and different income declines, have been partly offset by increased wi-fi gear revenues and better promoting revenues related to timing shift of sports activities from the primary half of 2020.