AT&T US up 161k; DTVLA up 139k video subs in 4Q 2017

AT&T Reports Fourth-Quarter and Full-Year Results

DALLAS — AT&T Inc. (NYSE:T) reported solid wireless, business and international results in the fourth quarter. Highlights include strong postpaid phone gains, record-low fourth-quarter postpaid phone churn and DIRECTV NOW surpassing 1 million subscribers.

Entertainment Group

Total video subscribers grew by 161,000 in the quarter as DIRECTV NOW subscribers more than offset traditional video declines. The Entertainment Group ended the quarter with 25.2 million total video subscribers.

• Traditional video subscribers declined 207,000 in the fourth quarter due to heightened competition in traditional pay-TV markets and over-the-top services. Satellite subscribers declined by 147,000 in the quarter and IPTV subscribers declined by 60,000. About 85% of the traditional video base is now on the satellite platform.
• DIRECTV NOW added 368,000 subscribers to reach nearly 1.2 million customers. During the quarter, the company began beta testing a new video platform.

Video (in thousands)

                                                                           Three Months Ended
               ------------------------------------------------------------------------------
                3/31/16   6/30/16   9/30/16  12/31/16   3/31/17   6/30/17   9/30/17  12/31/17
               --------  --------  --------  --------  --------  --------  --------  --------
Connections
 Satellite       20,112    20,454    20,777    21,012    21,012    20,856    20,605    20,458
 U-verse          5,232     4,841     4,515     4,253     4,020     3,825     3,691     3,631
 DIRECTV NOW          -         -         -       267       339       491       787     1,155
               --------  --------  --------  --------  --------  --------  --------  --------
Total            25,344    25,295    25,292    25,532    25,371    25,172    25,083    25,244
                                    
Net Adds                  
 Satellite          328       342       323       235         0      -156      -251      -147
 U-verse           -382      -391      -326      -262      -233      -195      -134       -60
 DIRECTV NOW          -         -         -       267        72       152       296       368
               --------  --------  --------  --------  --------  --------  --------  --------
Total               -54       -49        -3       240      -161      -199       -89       161

International – DIRECTV Latin America

Fourth-quarter subscriber net adds were 139,000. Total subscribers at the end of the quarter were 13.6 million. Sky Mexico had approximately 8.0 million subscribers as of September 30, 2017.

Video (in thousands)

                                                                           Three Months Ended
               ------------------------------------------------------------------------------
                3/31/16   6/30/16   9/30/16  12/31/16   3/31/17   6/30/17   9/30/17  12/31/17
               --------  --------  --------  --------  --------  --------  --------  --------
Connections
 SKY Brazil       5,342     5,348     5,337     5,249     5,588     5,519     5,289     5,359
 PanAmericana     7,094     7,175     7,139     7,206     8,090     8,103     8,201     8,270
Total            12,436    12,523    12,476    12,455    13,678    13,622    13,490    13,629

Net Adds
 SKY Brazil        -101         6       -12       -88        39       -69      -230        70
 PanAmericana        28        81       -36        67        52        13        98        69
Total               -73        87       -48       -21        91       -56      -132       139