AT&T US up 125k; DTVLA down 15k video subs in 1Q 2018

AT&T Reports First-Quarter Results

DALLAS — AT&T Inc. (NYSE:T) reported solid wireless and international results in the first quarter. Highlights include solid prepaid phone gains, record-low first-quarter postpaid phone churn and continued DIRECTV NOW subscriber growth.

Entertainment Group

Total video subscribers grew by 125,000 in the quarter as DIRECTV NOW subscribers more than offset linear video declines. The Entertainment Group ended the quarter with 25.4 million total video subscribers.

• Linear video subscribers declined 187,000 in the first quarter due to heightened competition in linear pay-TV markets and from over-the-top services. Satellite subscribers declined by 188,000 in the quarter, and IPTV subscribers increased by 1,000.

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   3/31/18
               --------  --------  --------  --------  --------  --------  --------  --------  --------
Connections
 Satellite       20,112    20,454    20,777    21,012    21,012    20,856    20,605    20,458    20,270 
 U-verse          5,232     4,841     4,515     4,253     4,020     3,825     3,691     3,631     3,632
 DIRECTV NOW          -         -         -       267       339       491       787     1,155     1,467
               --------  --------  --------  --------  --------  --------  --------  --------  --------
Total            25,344    25,295    25,292    25,532    25,371    25,172    25,083    25,244    25,369
                                    
Net Adds                  
 Satellite          328       342       323       235         0      -156      -251      -147      -188
 U-verse           -382      -391      -326      -262      -233      -195      -134       -60         1
 DIRECTV NOW          -         -         -       267        72       152       296       368       312
               --------  --------  --------  --------  --------  --------  --------  --------  --------
Total               -54       -49        -3       240      -161      -199       -89       161       125

International – DIRECTV Latin America

DIRECTV Latin America revenues reflect price increases driven by macroeconomic conditions with mixed local currencies. Total revenues from Latin America were $1.4 billion, up slightly year over year. Operating income was $148 million with continued positive free cash flow.

• First-quarter subscribers were down 15,000 driven by declines in Brazil. Total subscribers at the end of the quarter were 13.6 million. Sky Mexico had approximately 8.0 million subscribers as of December 31, 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   3/31/18
               --------  --------  --------  --------  --------  --------  --------  --------  --------
Connections      12,436    12,523    12,476    12,455    13,678    13,622    13,490    13,629    13,573
Net Adds            -73        87       -48       -21        91       -56      -132       139       -15