DirecTV Adds 214000 Subscribers in the Fourth Quarter

AT&T is adding plenty of non-smartphone devices to its network, but it’s also losing some pretty important customers, with postpaid smartphone sales dropping by 27 percent.

“We now have a unique set of capabilities that positions us for growth and also gives us a strategic advantage in providing consumers and businesses the integrated mobile, video and data solutions they want”, Stephenson wrote.

US wireless revenue was $18.9 billion for the fourth quarter, down from $19.9 billion the year prior. Third-quarter wireless subscriber additions came in higher than many Wall Street estimates, and DirecTV saw positive video additions where many expected losses.

Revenue increased by 22% year-over-year to $42.12 billion, driven by the DirecTV acquisition, but missed estimates of $42.75 billion for the quarter. While the full earnings report crows that AT&T added 2.8 million wireless subscribers on the quarter, the lion’s share of those additions are tablets (many of which are all-but given away on promotion) and connected cars (many of which may not actually subscribe to AT&T embedded LTE service beyond introductory periods).

AT&T ended the fourth quarter with 73.7 million business wireless subscribers. Business wireline revenue totaled $8.1 billion, down almost 4 percent year over year. “Our DIRECTV integration is going well, and the customer response to our new integrated mobile and entertainment offers is strong”.

AT&T also announced a 2.1 percent dividend increase. AT&T reiterated 2015 guidance for double-digit revenue growth and continued consolidated margin expansion.

AT&T responded with an annual outlook of “double-digit consolidated revenue growth” and the hope of growing earnings per share in the single-digit range. Operating expenses reflect actuarial gains and losses on benefit plans and were $122.0 billion compared with $120.2 billion, up 1.5%; net income attributable to AT&T was $13.3 billion versus $6.4 billion; and earnings per diluted share was $2.37, compared with $1.24. AT&T’s CEO, Randall Stephenson also hinted at the company launching their own video service again, during the quarterly earnings.