HBO Max at 4.1M; AT&T U.S. down 954k; Vrio down 2.5M video subs in 2Q 2020
Thursday, July 23rd, 2020DALLAS — AT&T Inc. (NYSE:T) reported second-quarter results that continue to underscore the financial strength and ample liquidity of the business even with current economic conditions.
WarnerMedia
John Stankey – Chief Executive Officer, AT&T (on earnings call): “One month after launch, HBO Max had about 3 million retail subscribers and 4.1 million subscribers had activated their Max accounts. Of those, more than 1 million were wholesale subscribers through AT&T.”
Entertainment Group
- Premium TV subscribers (which includes DIRECTV, U-verse and AT&T TV subscribers): 886,000 loss due to competition as well as lower gross adds from the continued focus on adding higher value customers
- AT&T TV NOW subscribers: 68,000 net loss due to less promotional activity
Video (in thousands):
Three Months Ended ------------------------------------------------------------------------------ 9/30/18 12/31/18 3/31/19 6/30/19 9/30/19 12/31/19 3/31/20 6/30/20 -------- -------- -------- -------- -------- -------- -------- -------- Connections Satellite 19,625 19,222 U-verse 3,669 3,681 -------- -------- -------- -------- -------- -------- -------- -------- Premium TV 23,294 22,903 22,359 21,581 20,418 19,473 18,576 17,690 Over-the-Top* 1,858 1,591 1,508 1,340 1,145 926 788 720 -------- -------- -------- -------- -------- -------- -------- -------- Total 25,152 24,494 23,867 22,921 21,563 20,399 19,364 18,410 Net Adds Satellite -359 -403 U-verse 13 12 -------- -------- -------- -------- -------- -------- -------- -------- Premium TV -346 -391 -544 -778 -1,163 -945 -897 -886 Over-the-Top* 49 -267 -83 -168 -195 -219 -138 -68 -------- -------- -------- -------- -------- -------- -------- -------- Total -297 -658 -627 -946 -1,358 -1,164 -1,035 -954
* Premium TV connections and net adds include AT&T TV, which initially launched in 3Q19 and expanded nationwide in 1Q20. 1Q19 connections and net adds include the impact of conforming the Entertainment Group subscriber disconnection policy with the Mobility business and industry practice (to billing cycle basis). This policy change resulted in an additional 117K Premium TV and 38K Broadband subscribers at March 31, 2019.
Vrio
In May 2020, we found it necessary to close our DIRECTV operations in Venezuela due to political instability in the country and to comply with sanctions from the U.S. government. This had minimal impact on segment financials but did result in about 2 million fewer total subscribers in the customer base
- Subscriber Metric – (312,000) net losses, mainly due to the COVID-19 related loss of sporting events and macro-economic conditions; 10.7 million total subscribers at the end of the quarter
Video (in thousands):
Three Months Ended ------------------------------------------------------------------------------ 9/30/18 12/31/18 3/31/19 6/30/19 9/30/19 12/31/19 3/31/20 6/30/20 -------- -------- -------- -------- -------- -------- -------- -------- Connections 13,640 13,838 13,584 13,473 13,306 13,331 13,217 10,664 Venezuela -2,241 Net Adds -73 198 -32 -111 -167 25 -114 -312
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