AT&T U.S. down 644k; Vrio up 49k video subs in 4Q 2020

DALLAS — AT&T Inc. (NYSE:T) reported fourth-quarter results that showed continuing subscriber growth in wireless, fiber and HBO Max while continuing to reflect strong cash flows and financial strength.

Communications: Video

Subscriber Metrics:

• Premium TV subscribers (which includes all DirecTV, U-verse and AT&T TV subscribers): 617,000 loss due to competition, lower gross adds from the continued focus on adding higher value customers and a programming dispute, partially offset by lower churn.
• AT&T TV NOW subscribers: 27,000 net loss

Video (in thousands):

                                                                            Three Months Ended
                ------------------------------------------------------------------------------
                 3/31/19   6/30/19   9/30/19  12/31/19   3/31/20   6/30/20   9/30/20  12/31/20
                --------  --------  --------  --------  --------  --------  --------  --------
Premium TV*       22,383    21,605    20,442    19,496    18,599    17,712    17,121    16,505 
Over-the-Top†      1,508     1,340     1,145       926       788       720       683       656 
                --------  --------  --------  --------  --------  --------  --------  --------
Total             23,891    22,945    21,587    20,422    19,387    18,432    17,804    17,161

Net Adds                  
Premium TV*         -543      -778    -1,163      -946      -897      -887      -591      -617
Over-the-Top†        -83      -168      -195      -219      -138       -68       -37       -27
                --------  --------  --------  --------  --------  --------  --------  --------
Total               -626      -946    -1,358    -1,165    -1,035      -955      -628      -644

During 4Q20, to further accelerate our ability to innovate and execute in our fast-growing broadband and fiber business, we began operating our video business separately from our broadband and legacy telephony operations. Prior-period results were recast for all periods to split the former Entertainment Group into two separate business units, Video and Broadband, and remove video operations from Business Wireline, combining all video operations into Video.
* Premium TV connections and net adds include AT&T TV, which initially launched in 3Q19 and expanded nationwide in 1Q20.
† Over-the-top connections include AT&T TV NOW and exclude WatchTV, which launched near end of June 2018. Beginning in January 2021, AT&T TV NOW has been combined with AT&T TV. AT&T TV NOW connections as of 4Q20 include 12K free or substantially free trial-period subscribers. AT&T has successfully retained many subscribers after the expiration of their trial period.

Latin America: Vrio

Subscriber Metrics:

• 49,000 net adds, driven by the return of soccer leagues, partial lifting of COVID-19 restrictions and continued expansion of over-the-top video services across the region, partially offset by economic pressures in Brazil
• 10.9 million total subscribers at the end of the quarter

Video (in thousands):

                                                                           Three Months Ended
               ------------------------------------------------------------------------------
                3/31/19   6/30/19   9/30/19  12/31/19   3/31/20   6/30/18   9/30/18  12/31/20
               --------  --------  --------  --------  --------  --------  --------  --------
Connections**    13,584    13,473    13,306    13,331    13,217    10,664    10,893    10,942
Net Adds**          -32      -111      -167        25      -114      -312       229        49

** Vrio Video connections and net adds include satellite and over-the-top. 2Q20 Video connections include a reduction of 2.2M subscriber disconnections resulting from the closure of DIRECTV operations in Venezuela.

WarnerMedia: Home Box Office

Subscriber Metrics:

• HBO Max/HBO domestic subscribers increased nearly 7 million year over year driven by HBO Max

Domestic HBO and HBO Max Subscribers (millions):

               4Q19  1Q20  2Q20   3Q20   4Q20
               ----  ----  ----  -----  -----
Subscribers    34.6  33.1  36.3  38.0*
Net Adds YoY                             ~7.0

* 3Q20 Includes 28.7M subscribers with access to HBO Max and 8.6M HBO Max activations. HBO Max launched at end of May ’20.