AT&T has revealed that it added 72,000 mobile phone subscribers and lost 778,000 premium TV subscribers in the second quarter of 2019.
The second-largest U.S. wireless carrier by subscribers had lost 544,000 DirecTV satellite and U-verse television customers in the first quarter.
AT&T said total revenues rose 15.3 percent to $45 billion versus $39 billion in the year-ago quarter, primarily due to the Time Warner acquisition.
AT&T closed its $85 billion acquisition of media company Time Warner in June last year, creating WarnerMedia business unit that has assets including the Turner TV networks and HBO channel. AT&T’s WarnerMedia business unit reported revenue of $8.4 billion during the quarter vs $7.9 billion.
AT&T’s revenue was $17.5 billion vs $17.3 billion from mobility business, $11.4 billion vs $11.5 billion from entertainment group, $6.6 billion vs $6.7 billion from wireline business unit.
Capex touched $5.5 billion, while capital investment including payment to vendors was $6.5 billion during the second quarter. AT&T said its gross capital investment will be in the $23 billion range for the year.
AT&T did not reveal any latest information on the 5G roll outs.
AT&T reported operating expenses (Opex) of $37.5 billion versus $32.5 billion in the year-ago quarter, an increase of about $4.9 billion due in part to the Time Warner acquisition, partially offset by cost efficiencies and lower Entertainment Group and wireless equipment costs.
AT&T posted operating income of $7.5 billion versus $6.5 billion in the year-ago quarter, primarily due to the Time Warner acquisition, with operating income margin of 16.7 percent versus 16.6 percent.
Net income of AT&T was $3.7 billion, or $0.51 per diluted share, versus $5.1 billion, or $0.81 per diluted share, in the year-ago quarter.