(Reuters) – AT&T Inc’s quarterly revenue and monthly phone bill paying subscriber additions beat market expectations on Thursday, on increased demand for its phone and internet service and steady growth for its streaming platform HBO Max.
Total revenue fell 5.7% to $39.9 billion in the third quarter compared to a year earlier due to the divestment of satellite TV provider DirectTV. But it exceeded analysts’ average estimate of $39.14 billion.
Telecom operators, including AT&T and Verizon Communications Inc, have been unwinding their expensive media businesses to direct their investment on phone and internet services.
With a debt pile of $179.2 billion as of Sept. 30, AT&T too has been under pressure to sell less profitable businesses and spend more on 5G and other wireless services.
These investments have paid off as the wireless carrier added 928,000 net new phone subscribers who pay a monthly bill, above quarterly expectations of 560,000, according to data from research firm FactSet.
Rival carrier Verizon added 429,000 subscribers in its latest quarter.
Media companies have also been trying to beat competition and grow by investing heavily in content and international expansion.
While streaming services have been grappling with slowing subscriptions, AT&T added 12.5 million subscribers globally for its premium TV channel HBO and streaming service HBO Max as viewers flocked to titles like “White Lotus”, and “The Suicide Squad”.
Net income attributable to the company’s common stock rose to $5.9 billion, or 82 cents per share, in the quarter, from $2.8 billion, or 39 cents per share, a year earlier.
Excluding items, AT&T earned 87 cents per share.
(Reporting by Eva Mathews in Bengaluru and Sheila Dang in Dallas; Editing by Arun Koyyur)
