LONDON (ShareCast) - (Sharecast News) - US media giant AT&T reported a slide in fourth-quarter revenues on Wednesday, as the growing popularity of streaming services hurt satellite TV subscriptions.
Fourth-quarter revenues came in at $46.8bn, down on the $48.0bn reported 12 months earlier. Operating income fell to $5.3bn from $6.2bn, following a $1.3bn write-off of copper facilities, while diluted earnings per share were $0.33, compared to $0.66 a year previously.

The company, which owns a range of entertainment brands, including HBO and the Cartoon Network, said growth in domestic wireless services and strategic and managed business services had only partially offset declines in revenues from domestic video, legacy wireline services and WarnerMedia.

AT&T added net 229,000 new phone customers during the quarter, but revenues from the entertainment division, which includes DirecTV, fell 6.1% to $11.23bn, after it lost 945,000 premium TV subscribers. While the increase in phone customers beat forecasts, the fall in subscribers was bigger than some analysts had expected.

A leading player in telecoms, AT&T has spent a total of $134bn acquiring satellite TV provider DirecTV and then Time Warner as it looked to transform itself into a full-service media and entertainment company. But it has struggled as customers abandon satellite television in favour of streaming services such as Netflix. It is seeking to compete with its own streaming platform, HBO Max, which is scheduled to launch in May.

Randall Stephenson, chairman and chief executive, said: "We delivered what we promised in 2019, and we begin this year with strong momentum in wireless, with HBO Max set to launch in May and our share retirement plan well underway.

"Our 2020 outlook positions us to deliver meaningful progress on our three-year financial and capital allocation plans, as we continue to invest in growth opportunities and create value for our owners."

The company reiterated full-year revenue growth expectations of between 1% and 2% for 2020, with adjusted EPS growth - which includes the investment in HBO Max - between $3.60 and $3.70.

For the year to 31 December 2019, consolidated total revenues were $181.2bn compared to $170.8bn a year earlier. Operating income rose 7.1% to $28.0bn, helped by a full-year of Time Warner ownership. Adjusted earnings per diluted common share were $3.57, against $3.52 in 2018.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE