AT&T, the biggest USA pay-television operator after its $49 billion acquisition of DirecTV, reported its linear video business lost 233,000 customers in the quarter. For the quarter, AT&T said that new DirecTV Now customers helped offset declines in linear television subscribers, which fell by 233,000. Free cash flow - cash from operating activities minus capital expenditures - was $3.2 billion for the quarter.
( T ) Tuesday reported a first-quarter profit that dropped from a year ago, reflecting lower-than-expected revenues.
AT&T posted 2.7 million wireless net adds in the latest period, with 2.1 million of those coming from the US, and 633,000 in Mexico.
Stephenson also answered a question about AT&T's DirecTV satellite business, which has been bleeding subscribers along with other traditional pay-TV services as cord-cutting gains in popularity. In the competitive consumer wireless market, AT&T has been focused on retaining its most profitable customers and shying away from promotional offers to grab market share. Earnings per share came in 74 cents, matching the expectations of Thomson Reuters, CNBC reported.
In all for the March quarter, AT&T's earned $3.5 billion, or 56 cents a share, down from $3.8 billion, or 61 cents a share, a year earlier. The customer erosion still weighed on sales, with the company posting revenue of $39.4 billion, trailing the $40.6 billion seen by analysts.
Authorities say 5 dead in New York City fire
"My babies! My babies!" screamed a woman who neighbors said lost her 2-year-old son and 9-year-old brother in the blaze. A neighbor told the New York Post that she saw a baby who was very badly burned being carried from the home.
Business wireless revenue was down 2.1 percent year over year to $9.4 billion, reflecting lower equipment revenues from lower sales.
AT&T is fighting to both keep and add customers and increase revenue amid a price war with smaller rivals T-Mobile US Inc. and Sprint Corp.
Shares of AT&T Inc.
Updated full-year 2017 guidance including mid-sing-digit adjusted EPS growth and free cash flow of $18 billion.
AT&T stock is up 48 cents, or 1.2%, at $40.42, in late trading. However, the company said it is "no longer providing consolidated revenue guidance primarily due to the unpredictability of wireless handset sales".