DIRECTV up 342k; U-Verse down 391k; DTVLA up 87k subscribers in 2Q 2016

342,000 U.S. DIRECTV net adds; 38,000 global TV net adds

DALLAS — AT&T Inc. (NYSE:T) today reported revenue, net income, adjusted EPS and free cash flow growth for the second quarter.

Entertainment Group

Total video subscribers were down 49,000 in the quarter. The company added 342,000 satellite subscribers in the second quarter. U-verse TV subscribers declined 391,000 as the company continued to focus on profitability and increasingly emphasized satellite sales. The Entertainment Group ended the quarter with 25.3 million video subscribers.

Video (in thousands)

              9/30/14  12/31/14   3/31/15   6/30/15   9/30/15  12/31/15   3/31/16   6/30/16
             --------  --------  --------  --------  --------  --------  --------  --------
Connections
 U-verse        6,067     5,943     5,993     5,971     5,880     5,640     5,232     4,841
 DIRECTV            -         -         -         -    19,570    19,784    20,112    20,454
Total           6,067     5,943     5,993     5,971    25,450    25,424    25,344    25,295

Additions
 U-verse          216      -124        50       -22      (91)     (240)     (382)     (391)
 DIRECTV            -         -         -         -        26       214       328       342
Total             215        73        50      (22)      (65)      (26)      (54)      (49)

International – DIRECTV Latin America

AT&T is a leading provider of pay television services in Latin America and owns 100% of its satellite operations serving Argentina, Chile, Colombia, Ecuador, Peru, Uruguay, Venezuela and parts of the Caribbean. It also owns approximately 93% of Sky Brasil and 41% of Sky Mexico. Sky Mexico financial results are accounted for as an equity method investment.

Second-quarter subscriber net adds were 87,000, driven by gains in Argentina overcoming subscriber pressure caused by the earthquake in Ecuador. Total subscribers at the end of the quarter were 12.5 million. Sky Mexico added 121,000 subscribers in the second quarter and had approximately 7.8 million subscribers as of June 30, 2016.

Video (in thousands)

                  9/30/15  12/31/15   3/31/16   6/30/16
                 --------  --------  --------  --------
Connections                        
 Brazil             5,538     5,444     5,342     5,348
 Other Countries    7,006     7,066     7,094     7,175
Total              12,544    12,510    12,436    12,523
                        
Additions                        
 Brazil             (129)      (94)     (101)         6
 Other Countries       16        60        28        81
Total               (113)      (34)      (73)        87