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AT company&T lost about 1 million subscribers
The second largest mobile operator in the United States by the number of subscribers has lost more than 1 million audience amid the growth in the popularity of streaming services.
778,000 subscribers have unsubscribed from premium TV. This category includes DirecTV and U-verse clients. Also at 168 000 subscribers dropped by DirecTV Now streaming accounts. AT & T expects similar churn rates to continue in the current quarter.
However, according to research firm FactSet, the number of network subscribers increased by 72,000, which exceeds analysts’ estimates by 27,000..
The number of postpaid telephone subscribers, or the percentage of customer refusals, was 0.86% versus 0.82% in the previous year.
The company’s shares rose 2.1% to $ 32.77.
Recall that AT&T completed its $ 85 billion acquisition of media company Time Warner last June, creating a new business segment called Warner Media to host assets including Turner television networks and premium HBO..
The new segment reported revenue of $ 8.4 billion against analyst expectations of $ 8.3 billion, according to IBES data from Refinitiv.
The company says Warner Media HBO Max streaming service is slated to launch in Spring 2020.
AT&T has focused on paying off its debt after acquiring Time Warner, which increased its net debt burden to $ 180 billion last year.
The company also raised its 2019 free cash flow forecast to around $ 28 billion..