AT&T is not expecting substantial 5G revenue this year?

AT&T is yet to reveal any exciting information on the revenue from its 5G business after making huge investment.
AT&T 5G Evolution

AT&T said it plans to expand 5G services in parts of 29 cities by year-end against 21 markets at present. AT&T will have nationwide 5G coverage on sub-6 GHz spectrum by the first half of 2020. AT&T on Dec 21, 2018 started offering 5G services on standards-based millimeter wave mobile 5G network in parts of 12 cities.

AT&T said it sees growth in its wireless revenues – only beyond 2019 — due to facts such as post-paid smartphone growth; FirstNet expansion; higher unlimited plan penetration; Cricket subscriber growth; less pressure from reseller; and its 5G leadership.

The development indicates that AT&T is yet to generate significant demand for its 5G services.

AT&T started selling Samsung Galaxy S10 5G smartphone for $1,000 on June 17 to AT&T Business customers and 5G developers through the AT&T Developer Program. AT&T’s 5G service – on 5G mmWave (5G+) network — was live in 19 cities in June 2019.

AT&T’s wireless service revenues rose 2.6 percent in the first half of 2019 with expectations for continued quarter-over-quarter growth in the second half of the year.
AT&T has achieved the status as the nation’s best wireless network for the 2nd straight year and fastest wireless network for the 2nd straight quarter.

AT&T indicated that weakness in its wireless equipment unit could impact its revenue in the third quarter. AT&T said low upgrade rates are negatively impacting its wireless equipment revenue.

AT&T will announce third-quarter 2019 results on October 23 followed by WarnerMedia Day in Los Angeles on October 29.

The company also said it expects current-quarter revenue at its WarnerMedia unit to fall by $400 million from a year earlier, mainly due to a strong second half last year at Warner Bros.

AT&T forecasts premium TV subscriber trends to improve in 2020, as it expects far fewer customers on promotional pricing and the nationwide launch of AT&T TV.

John Stephens, chief financial officer of AT&T, said the largest wireless operator is focused on executing its strategy to create more value for WarnerMedia’s content by pairing it with direct-to-consumer distribution that is driving higher penetration for WarnerMedia content like HBO.

AT&T’s entertainment group EBITDA rose nearly 4 percent in the first half of the year, and AT&T continues to expect full-year stability.

The company expects an incremental 300,000 to 350,000 premium video losses above the previous quarter’s premium video results, driven by: managing costs with retransmission negotiations, content provider black outs; and from limiting promotional pricing.

In 2020, AT&T expects premium TV subscriber trends to improve due to far fewer customers on promotional pricing and the nationwide launch of AT&T TV, which delivers a premium streaming experience.

There will be some improve in entertainment group EBITDA beyond 2019 due to growth in broadband after making increased investment in fiber penetration and availability of higher speeds; a higher-quality video and broadband customer base with lower churn and higher ARPU; cost management; advertising growth from Xandr and less pressure from declining legacy products.