Subscriber Additions and Revenue Growth Offset by TV Subscriber Losses and Media Struggles 😅
The Good: Beats on Revenue and Earnings
AT&T just released its Q2 earnings report, and the results are a mixed bag. On the one hand, the company beat estimates on revenue and earnings, which is certainly a positive. In terms of revenue, AT&T reported $29.64 billion, which was ahead of the $29.45 billion consensus estimate. This is a significant beat, and it’s a testament to the company’s ability to drive growth in its core businesses. Adjusted EPS came in at $0.65, which was also ahead of the $0.61 consensus estimate. These beats are certainly a positive, and they suggest that AT&T is executing well on its strategy.
Subscriber Additions: A Bright Spot
One of the bright spots in the report was the company’s subscriber additions. AT&T added 316,000 postpaid phone subscribers, which is a significant improvement from the 144,000 additions in Q1. This is a great sign for the company’s wireless business, which is a key driver of its overall revenue. The company’s investments in its network and customer service seem to be paying off, as customers are responding positively to its offerings.
The Not-So-Good: Decline in TV Subscribers
However, not all of the news was positive. AT&T lost 473,000 TV subscribers, which is a bigger decline than expected. This is a concern, as the company’s media business is still struggling to find its footing. The decline in TV subscribers is likely due to the ongoing shift towards streaming services, which is a trend that’s unlikely to reverse anytime soon. AT&T’s media business, which includes WarnerMedia, is still trying to find its place in this new landscape.
WarnerMedia: A Work in Progress
WarnerMedia, in particular, saw revenue decline 12.2% year-over-year. While this isn’t ideal, the company is still investing heavily in its streaming service, HBO Max, which has seen some success. The service has attracted millions of subscribers, and it’s clear that AT&T is committed to making it a major player in the streaming space. However, the decline in revenue is a concern, and it suggests that the company still has a lot of work to do to turn its media business around.
Outlook: Cautious Optimism
Overall, AT&T’s Q2 report was a mixed bag. While the company’s beats on revenue and earnings are certainly positives, the decline in TV subscribers and struggles in the media business are concerns. However, the company’s subscriber additions and investments in its network and customer service suggest that it’s on the right track. I’m cautiously optimistic about AT&T’s future, but they need to keep working on their media strategy to drive long-term growth.
