AT&T linear down 233k; DTVLA up 91k video subs in 1Q 2017

DIRECTV NOW gains help offset linear TV subscriber decline

DALLAS — AT&T Inc. (NYSE:T) today announced continued adjusted margin expansion and solid adjusted earnings growth for the first quarter.

Entertainment Group

Total linear video subscribers were down in the quarter; however, DIRECTV NOW subscribers continued to increase.

There was no change in the number of satellite subscribers in the first quarter. IPTV subscribers declined by 233,000 as the company continued to focus on profitability. About 84% of the linear video base is now on the satellite platform. The Entertainment Group ended the quarter with 25.0 million total linear video subscribers.

Video (in thousands)

                                                                                     Three Months Ended
               ----------------------------------------------------------------------------------------
                3/31/15   6/30/15   9/30/15  12/31/15   3/31/16   6/30/16   9/30/16  12/31/16   3/31/17
               --------  --------  --------  --------  --------  --------  --------  --------  --------
Connections
 Satellite            -         -    19,570    19,784    20,112    20,454    20,777    21,012    21,012 
 U-verse          5,969     5,946     5,854     5,614     5,232     4,841     4,515     4,253     4,020 
Total             5,969     5,946    25,424    25,398    25,344    25,295    25,292    25,265    25,032
                                    
Net Adds                  
 Satellite            -        -         26       214       328       342       323       235         0
 U-verse             49      -23        -92      -240      -382      -391      -326      -262      -233
Total                49      -23        -66       -26       -54       -49        -3       -27      -233

International – DIRECTV Latin America

During the quarter, DIRECTV Latin America updated its methodology for counting prepaid subscribers to align with other AT&T prepaid business policies. This change increased the total number of DIRECTV Latin America subscribers by 1.1 million. The change did not impact revenues, expenses or cash flows of the business. First-quarter subscriber net adds were 91,000. Total subscribers at the end of the quarter were 13.7 million. Sky Mexico had approximately 8.0 million subscribers as of December 31, 2016.

Video (in thousands)

                                                                 Three Months Ended
               --------------------------------------------------------------------
                9/30/15  12/31/15   3/31/16   6/30/16   9/30/16  12/31/16   3/31/17
               --------  --------  --------  --------  --------  --------  --------
Connections
 SKY Brazil       5,538     5,444     5,342     5,348     5,337     5,249     5,588
 PanAmericana     7,006     7,066     7,094     7,175     7,139     7,206     8,090
Total            12,544    12,510    12,436    12,523    12,476    12,455    13,678

Net Adds
 SKY Brazil       (129)      (94)     (101)         6      (12)       -88        39
 PanAmericana        16        60        28        81      (36)        67        52
Total             (113)      (34)      (73)        87      (48)       -21        91