Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

AT&T INC.

(T)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

AT&T Books $15.5 Billion Charge on DirecTV Unit--Update

01/27/2021 | 08:07am EDT

By Drew FitzGerald

AT&T Inc. booked a $15.5 billion charge on its pay-TV business, reflecting the damage cord-cutting has taken on its DirecTV satellite unit even as the company's HBO Max streaming service's growth ramped up.

The write-down created a fourth-quarter loss as the media and telecom giant signaled it would move away from traditional channel bundles to focus on streaming media. The company reported quarterly revenue declines in its pay-TV and WarnerMedia units, offsetting gains in its core wireless phone division.

Overall, AT&T reported a fourth-quarter loss of $13.89 billion, or $1.95 a share, compared with a profit of $2.39 billion, or 33 cents a share, a year earlier. Revenue fell 2.4% to $45.7 billion.

The coronavirus pandemic has strained the giant, hurting advertising at cable networks like CNN and TBS and closing many of the theaters that show its Warner Bros. films. Those pullbacks obscured gains in the company's wireless service, which still generates more than half of the company's profits.

The last three months of the year gave AT&T a net gain of 800,000 postpaid phone subscribers, a metric closely watched by Wall Street. Rivals Verizon Communications Inc. and T-Mobile US Inc. reported net gains of 279,000 and 824,000 such connections, respectively.

Revenue from AT&T's WarnerMedia division fell 9.5% to $8.5 billion as the show business side continued to wrestle with low box-office revenue and weak advertising revenue. The HBO business grew and ended the year with 41.5 million U.S. subscribers, a figure that includes older cable plans as well as the new online service.

AT&T's media division stunned Hollywood last year with a plan to release all of Warner Bros.' 2021 movies on HBO Max the same day they hit theaters. Executives said the move would help the business cope with audiences reluctant to visit theaters during a pandemic while giving the studio's sister streaming service an extra boost.

HBO Max ended the year with 17.1 million activated accounts. It is competing in a crowded streaming-video marketplace where Netflix Inc. has already eclipsed more than 200 million subscribers world-wide.

Revenue in the video unit, which includes AT&T's U-verse and DirecTV services, fell 11% to $7.2 billion in the fourth quarter. The business ended the year with 17.2 million domestic connections, down from 20.4 million at the end of 2019.

AT&T has held deal discussions with suitors, including private-equity firm TPG, that valued the video business at more than $15 billion including debt, the Journal has reported. The fourth-quarter write-down reflects how the business has changed since AT&T bought DirecTV in 2015 for $49 billion.

The Wall Street Journal reported in August that AT&T had tapped bankers to explore a deal to take the fast-shrinking business off its books. The transaction could allow AT&T to deconsolidate DirecTV's worsening financial results while retaining a stake in the TV giant.

The video losses have weighed on AT&T's stock, which missed out the stock market's rally. AT&T shares fell about 20% last year.

Write to Drew FitzGerald at andrew.fitzgerald@wsj.com

(END) Dow Jones Newswires

01-27-21 0807ET

Stocks mentioned in the article
ChangeLast1st jan.
AT&T INC. 0.31% 25.7 Delayed Quote.-10.64%
NETFLIX, INC. -0.87% 628.29 Delayed Quote.16.19%
T-MOBILE US -1.43% 117.56 Delayed Quote.-12.82%
VERIZON COMMUNICATIONS 0.67% 52.27 Delayed Quote.-11.63%
All news about AT&T INC.
10/15AT&T : Helps Keep Austin Connected at Annual Music Festival
PU
10/15AT&T'S 'CNN PLUS' WILL REPORTEDLY NO : Variety
MT
10/14AT&T : Stock 'Still Not Compelling' After Being Fairly Valued Amid 'Simplified' Business, ..
MT
10/14AT&T : Cybersecurity Conference is Open for Registration
PU
10/14AT&T : KeyBanc Upgrades AT&T to Sector Weight from Underweight
MT
10/13AT&T : Thinking about trading options or stock in AT&T, SoFi Technologies, Delta Air Lines..
PR
10/13AT&T : Brings Cellular Connectivity Through IoT Innovations
PU
10/13AT&T : Laying Groundwork for Projected Ramp in IoT Deployments
PR
10/13AT&T : Launches New Service for Cybersecurity
MT
10/12AT&T : New AT&T Cybersecurity Managed XDR Solution Helps Organizations to Deliver on Digit..
PR
More news
Analyst Recommendations on AT&T INC.
More recommendations
Financials (USD)
Sales 2021 168 B - -
Net income 2021 17 627 M - -
Net Debt 2021 157 B - -
P/E ratio 2021 10,6x
Yield 2021 8,12%
Capitalization 183 B 183 B -
EV / Sales 2021 2,02x
EV / Sales 2022 2,14x
Nbr of Employees 230 760
Free-Float 93,6%
Chart AT&T INC.
Duration : Period :
AT&T Inc. Technical Analysis Chart | T | US00206R1023 | MarketScreener
Technical analysis trends AT&T INC.
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 28
Last Close Price 25,70 $
Average target price 32,11 $
Spread / Average Target 24,9%
EPS Revisions
Managers and Directors
John T. Stankey President, CEO, COO & Director
Pascal Desroches Chief Financial Officer & Senior Executive VP
William E. Kennard Independent Chairman
David S. Huntley Chief Compliance Officer & Senior Executive VP
Matthew K. Rose Lead Independent Director
Sector and Competitors
1st jan.Capi. (M$)
AT&T INC.-10.64%183 494
T-MOBILE US-12.82%146 711
SOFTBANK GROUP CORP.-21.94%94 382
KDDI CORPORATION21.75%73 472
AMÉRICA MÓVIL, S.A.B. DE C.V.27.67%59 088
VODAFONE GROUP PLC-8.68%41 752