HBO up 1.9 million; Vrio down 178,000 video subs in 3Q 2021

Thursday, October 21st, 2021 
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DALLAS — AT&T Inc. (NYSE:T) reported third-quarter results that showed continuing customer growth in wireless, fiber and HBO Max.

WarnerMedia

At the end of the quarter, there were 69.4 million global HBO Max and HBO subscribers. Global HBO Max and HBO subscribers increased 12.5 million year over year and were up 1.9 million sequentially, as international and ad-supported subscriber gains were partially offset by HBO Max being discontinued on the Amazon wholesale platform. At the end of the quarter, there were 45.2 million domestic HBO Max and HBO subscribers versus 38.0 million in the year-ago quarter, up 7.1 million year over year. Domestic subscriber ARPU was $11.82.(1)

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

                                           3/31/20   6/30/20   9/30/20  12/31/20   3/31/21   6/30/21   9/30/21
                                          --------  --------  --------  --------  --------  --------  --------
Total Global HBO Max and HBO Subscribers    53,841    55,576    56,894    60,613    63,921    67,527    69,414
 Domestic HBO Max and HBO Subscribers(2)    33,096    36,347    38,033    41,528    44,183    47,029    45,181
  HBO Max - Wholesale                           -    23,594    25,106    30,785    30,935    31,451    29,026
  HBO Max - Retail                               -     2,975     3,625     6,880     9,693    12,077    12,647
  HBO                                       28,829     5,918     5,614       197        55        32        30
  HBO Commercial                             4,267     3,860     3,688     3,666     3,500     3,469     3,478
 International HBO Subscribers(3)           20,745    19,229    18,861    19,085    19,738    20,498    24,233

Vrio

Vrio subscriber net losses of 178,000 were driven primarily by secular declines and economic pressures in Brazil, and lower sales in other parts of the region.

  • AT&T has reached an agreement to sell its Vrio operations to Grupo Werthein. The companies expect the transaction to close during the fourth quarter of 2021.

Video
(in thousands)

                                                                                     Three Months Ended
               ----------------------------------------------------------------------------------------
                9/30/19  12/31/19   3/31/20   6/30/18   9/30/18  12/31/20   3/31/21   6/30/21   9/30/21
               --------  --------  --------  --------  --------  --------  --------  --------  --------
Connections(4)   13,306    13,331    13,217    10,664    10,893    10,942    10,559    10,320    10,142
Net Adds(4)        -167        25      -114      -312       229        49      -383      -239      -178

1. Domestic subscriber ARPU is defined as domestic HBO Max and HBO subscriber revenues during the period divided by average domestic HBO Max and HBO subscribers during the period, excluding HBO Commercial and other bulk-billed revenues and subscribers during the period.
2. Domestic HBO Max and HBO Subscribers include the following categories of U.S. accounts: (1) HBO Max – Wholesale: accounts that have access to HBO Max through a wholesale distributor (including wholesale subscribers that may not have signed in), (2) HBO Max – Retail: accounts that have access to HBO Max and are billed directly by WarnerMedia or by a third party via in-app purchase, (3) HBO: accounts that do not have access to HBO Max, and (4) HBO Commercial: commercial 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 do not include free trials or Cinemax subscribers.
3. International HBO Max and HBO Subscribers consists of non-domestic accounts with access to HBO Max (including wholesale subscribers that may not have signed in), and HBO accounts and exclude free trial, basic and Cinemax subscribers.
4. Vrio Video connections and net adds include satellite and over-the-top.

Links: AT&T