AT&T premium TV down 620k; Vrio down 383k; HBO up 3.3M video subs in 1Q 2021

Thursday, April 22nd, 2021 
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DALLAS — AT&T Inc. (NYSE:T) reported first-quarter results that showed continuing customer growth in wireless, fiber and HBO Max and strong cash flows.

Corporate & Other: Video

Video results are now included in Corporate & Other as the business is classified as held-for-sale.

Video subscribers (in thousands):

                                                                            Three Months Ended
                ------------------------------------------------------------------------------
                 6/30/19   9/30/19  12/31/19   3/31/20   6/30/20   9/30/20  12/31/20   3/31/21
                --------  --------  --------  --------  --------  --------  --------  --------
Premium TV(1)     21,605    20,442    19,496    18,599    17,712    17,121    16,505    15,885
Over-the-Top(2)    1,340     1,145       926       788       720       683       656
                --------  --------  --------  --------  --------  --------  --------  --------
Total             22,945    21,587    20,422    19,387    18,432    17,804    17,161

Net Adds                  
Premium TV          -778    -1,163      -946      -897      -887      -591      -617      -620
Over-the-Top        -168      -195      -219      -138       -68       -37       -27
                --------  --------  --------  --------  --------  --------  --------  --------
Total               -946    -1,358    -1,165    -1,035      -955      -628      -644

Latin America: Vrio

Revenues were $743 million, down 16.2% year over year due to foreign exchange impacts. Operating loss was ($35) million compared to ($43) million in the year-ago quarter, with continued positive EBITDA for the quarter. 383,000 net losses were driven primarily by economic pressures and restructuring of sales channels in Brazil and COVID-19 restrictions in parts of the region.

Video (in thousands):

                                                                           Three Months Ended
               ------------------------------------------------------------------------------
                6/30/19   9/30/19  12/31/19   3/31/20   6/30/18   9/30/18  12/31/20   3/31/21
               --------  --------  --------  --------  --------  --------  --------  --------
Connections(3)   13,473    13,306    13,331    13,217    10,664    10,893    10,942    10,559
Net Adds(3)        -111      -167        25      -114      -312       229        49      -383

WarnerMedia

  • 2.7 million total domestic HBO Max and HBO subscriber net adds; total domestic subscribers of 44.2 million and nearly 64 million globally

Direct-to-Consumer (DTC) Operating Volumes and Statistics
Volumes in thousands Unaudited

                                          12/31/19   3/31/20   6/30/20   9/30/20  12/31/20   3/31/21
                                          --------  --------  --------  --------  --------  --------
Total Global HBO Max and HBO Subscribers    54,662    53,841    55,576    56,894    60,613    63,921
 Domestic HBO Max and HBO Subscribers(4)    34,587    33,096    36,347    38,033    41,528    44,183
  HBO Max - Wholesale                            -         -    23,594    25,106    30,785    30,935
  HBO Max - Retail                               -         -     2,975     3,625     6,880     9,693
  HBO                                       30,331    28,829     5,918     5,614       197        55
  HBO Commercial                             4,256     4,267     3,860     3,688     3,666     3,500
 International HBO Subscribers(5)           20,075    20,745    19,229    18,861    19,085    19,738

1. Premium TV connections and net adds include AT&T TV, which initially launched in 3Q19 and expanded nationwide in 1Q20.
2. 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.
3. 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. 2Q20 Mexico Reseller subscriber count includes 101K reduction for subscriber disconnections resulting from conforming to AT&T’s policy on reporting of fixed wireless resellers.
4. Domestic HBO Max and HBO Subscribers include the following categories: (1) HBO Max – Wholesale: domestic accounts that have access to HBO Max through a wholesale distributor (including AT&T’s video, broadband and mobility businesses) including wholesale subscribers that may not have signed in, (2) HBO Max – Retail: domestic accounts that have access to HBO Max and are billed directly by WarnerMedia or by a third party via in-app purchase, (3) HBO: domestic accounts that do not have access to HBO Max, and (4) HBO Commercial: domestic accounts that do not have access to HBO Max and are billed on a bulk basis (e.g., hotels, etc.). Domestic HBO Max and HBO Subscribers exclude free trials and Cinemax subscribers.
5. International HBO Subscribers include HBO premium pay TV and SVOD service subscribers and exclude free trials, and basic and Cinemax subscribers.

Links: AT&T