AT&T down 199k; DTVLA down 56k video subs in 2Q 2017

Total video subscribers essentially flat year over year

DALLAS — AT&T Inc. (NYSE:T) reported strong adjusted earnings growth and margin expansion with lower expenses in the second quarter.

Entertainment Group

Total video subscribers were down 199,000 in the quarter as DIRECTV NOW subscribers helped offset traditional video decreases. The company ended the quarter with 25.2 million total video subscribers, essentially flat from a year ago.

Traditional video subscribers declined 351,000 in second quarter due to seasonality and elevated competition. Satellite subscribers declined by 156,000 in the quarter and IPTV subscribers declined by 195,000 as the company continued to focus on profitability. About 85% of the traditional video base is now on the satellite 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
               --------  --------  --------  --------  --------  --------
Connections
 Satellite       20,112    20,454    20,777    21,012    21,012    20,856
 U-verse          5,232     4,841     4,515     4,253     4,020     3,825
 DIRECTV NOW          -         -         -       267       339       491
               --------  --------  --------  --------  --------  --------
Total            25,344    25,295    25,292    25,532    25,371    25,172
                                    
Net Adds                  
 Satellite          328       342       323       235         0      -156
 U-verse           -382      -391      -326      -262      -233      -195
 DIRECTV NOW          -         -         -       267        72       152
               --------  --------  --------  --------  --------  --------
Total               -54       -49        -3       240      -161      -199

International – DIRECTV Latin America

Second-quarter subscriber net losses were 56,000 with losses in Brazil, Argentina and Venezuela offsetting gains in other countries. Total subscribers at the end of the quarter were 13.6 million. Sky Mexico had approximately 8.0 million subscribers as of June 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
               --------  --------  --------  --------  --------  --------
Connections
 SKY Brazil       5,342     5,348     5,337     5,249     5,588     5,519
 PanAmericana     7,094     7,175     7,139     7,206     8,090     8,103
Total            12,436    12,523    12,476    12,455    13,678    13,622

Net Adds
 SKY Brazil       (101)         6      (12)       -88        39       -69
 PanAmericana        28        81      (36)        67        52        13
Total              (73)        87      (48)       -21        91       -56