AT&T US down 89k; DTVLA down 132k video subs in 3Q 2017

Tuesday, October 24th, 2017 
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Nearly 300,000 DIRECTV NOW net adds helped offset traditional TV subscriber decline

DALLAS — AT&T Inc. (NYSE:T) reported record wireless EBITDA margins and phone churn and strong wireless and DIRECTV NOW subscriber gains in the third quarter.

Entertainment Group

Total video subscribers were down 89,000 in the quarter as DIRECTV NOW subscribers helped offset traditional video declines. The company ended the quarter with 25.1 million total video subscribers, essentially flat from a year ago.

Traditional video subscribers declined 385,000 in the third quarter due to heightened competition in traditional pay-TV markets and over-the-top services, hurricanes and stricter credit standards. Satellite subscribers declined by 251,000 in the quarter and IPTV subscribers declined by 134,000. About 85% of the traditional video base is now on the satellite platform.

DIRECTV NOW added 296,000 subscribers to reach 787,000 customers. During the quarter, the company enhanced the user experience, added streaming devices and increased content choices.

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
               --------  --------  --------  --------  --------  --------  --------
Connections
 Satellite       20,112    20,454    20,777    21,012    21,012    20,856    20,605
 U-verse          5,232     4,841     4,515     4,253     4,020     3,825     3,691
 DIRECTV NOW          -         -         -       267       339       491       787
               --------  --------  --------  --------  --------  --------  --------
Total            25,344    25,295    25,292    25,532    25,371    25,172    25,083
                                    
Net Adds                  
 Satellite          328       342       323       235         0      -156      -251
 U-verse           -382      -391      -326      -262      -233      -195      -134
 DIRECTV NOW          -         -         -       267        72       152       296
               --------  --------  --------  --------  --------  --------  --------
Total               -54       -49        -3       240      -161      -199       -89

International – DIRECTV Latin America

Third-quarter subscriber net losses were 132,000 with prepaid losses in Brazil offsetting gains in other countries. Total subscribers at the end of the quarter were 13.5 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   9/30/17
               --------  --------  --------  --------  --------  --------  --------
Connections
 SKY Brazil       5,342     5,348     5,337     5,249     5,588     5,519     5,289
 PanAmericana     7,094     7,175     7,139     7,206     8,090     8,103     8,201
Total            12,436    12,523    12,476    12,455    13,678    13,622    13,490

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