10 Updates

AT&T Edges Above Q1 Earnings Expectations And Raises Outlook As It Ventures Into Online Streaming Market

Apr 22 2014, 4:08pm CDT | by

AT&T kicked off 2014 with a bang, revealing Tuesday afternoon that not only was the first fiscal quarter of the year its best first-quarter subscriber growth in five years, but that its revenue...

Filed under: news

 
 
 

13 weeks ago

AT&T Edges Above Q1 Earnings Expectations And Raises Outlook As It Ventures Into Online Streaming Market

Apr 22 2014, 4:08pm CDT | by

AT&T kicked off 2014 with a bang, revealing Tuesday afternoon that not only was the first fiscal quarter of the year its best first-quarter subscriber growth in five years, but that its revenue and profit results edged above what everyone was expecting. However, the good news for the company’s bottom line is bad news for its stock price: shares of the telecommunications company are down in after-hours trading as investors see the earnings beat, positive full-year outlook and the company’s venture into the online streaming space as a selling opportunity.

AT&T reported $32.5 billion in first quarter revenue, a hair above the $32.4 billion analyst consensus and a 3.6% increase over revenue reported for the same time in 2013. First quarter net income came in at $3.7 billion, or 70 cents per share, up from 67 cents per share in the prior-year quarter. Adjusting the results to exclude special items — like the costs associated with its acquisition of Leap Wireless — earnings came in at 71 cents per share, beating the Street consensus by a penny and marking an 11% increase over the adjusted 64 cents per share reported for the first quarter of 2013.

The wireless carrier said it added more than 1 million subscribers in the quarter, 625,000 of which were postpaid net adds (or contract subscribers), more than double the 296,000 postpaid subscribers added during the same time in 2013. This growth also marks an improvement over the fourth quarter of 2013, when AT&T reported 566,000 contract subscribers , missing analyst predictions and marking a 27.4% year-over-year decline.

These gains were slightly offset by a net loss of 50,000 prepaid subscribers (which AT&T attributed to declines in session-based tablets) and a net loss of 206,000 reseller subscribers, which AT&T attributed to losses in “low-revenue” 2G accounts. Even with this, the company said this was its best first-quarter postpaid growth in five years.

“We have been working very deliberately to transform our business, and this quarter you really start to see the benefits,” Randall Stephenson, AT&T chairman and CEO, said in a statement Tuesday afternoon. “Customers really like the new mobility value proposition and are choosing to move off device subsidies to simpler pricing while at the same time, they are continuing to move to smartphones with larger data plans.”

Other highlights from the quarter include the company’s wireless revenue, which increased 7% to $17.9 billion, as well as the company’s smartphone base, which increased 1.1 million during the quarter and now accounts for 92% of postpaid phone sales.

As a result of the quarter’s strong results, AT&T is raising its outlook for the rest of 2014, predicting consolidated revenue growth of “4% or greater,” adjusted earnings per share growth in the mid single digit range and free cash flow in the $11 billion range.

Earlier on Tuesday AT&T revealed that it is making a play for a chunk of the online video streaming market: together with The Chernin Group, a privately-held independent media holding company, it is committing $500 million to fund a venture that will acquire, invest in and launch video streaming services (also known as “over-the-top,” or OTT video services). AT&T and Chernin said the goal of this new joint venture will be to invest in advertising and subscription video-on-demand channels and online streaming services.

“AT&T and The Chernin Group are combining our skill sets to address the growing consumer demand for accessing content how and when they want it,” John Stankey, AT&T’s Chief Strategy Officer, said in a statement on Tuesday.

“Consumers are increasingly viewing video content on their phones, tablets, computers, game consoles and connected TVs on mobile and broadband networks,” said Peter Chernin, Chernin Group CEO. This is not Chernin’s first attempt to get into the online streaming space: in 2013, the former News Corp president made an unsuccessful attempt to acquire Hulu. In AT&T, however, he has found something with an even greater reach. AT&T boasts 110 million wireless subscribers compared to the 5 million people subscribed to Hulu as of year-end 2013. “AT&T’s massive reach on those platforms across mobile and broadband and their commitment to the online video space make them the perfect fit for this venture with us,” Chernin said.

AT&T’s move into the online streaming space follows a similar effort launched by competitor Verizon earlier in the year; in January, Verizon announced that it would purchase the assets of Intel Media , Intel’s business division dedicated to the development of cloud TV products and services. At the time, Verizon CEO Lowell McAdam called the move an opportunity to ”enhance, expand, accelerate and integrate” Verizon’s delivery of video products and services on a wide array of devices.

Shares of AT&T, which traded in the green following the video streaming announcement and closed at $36.26 for an 0.55% gain, dipped in after-hours trading as investors saw the good earnings news and positive forward momentum as a selling opportunity. The stock is currently down 2.04%; year-to-date,  AT&T has posted a 3.2% return.

 
Update
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dew ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken into by ro ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan Raky ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Ministe ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the southern state ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 milli ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Da ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an al ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Baz ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Daily running can lower death risk
Washington, July 29 (IANS) A new US study has suggested that running everyday, even for a few minutes, can significantly reduce a person's risk of dying from cardiovascular diseases.
 
 
China stocks open higher Tuesday
Beijing, July 29 (IANS) Chinese stocks opened higher Tuesday with the benchmark Shanghai Composite Index opening at 2,179.83 points, up 1.88 points, or 0.09 percent.
 
 
China's yuan strengthens
Beijing, July 29 (IANS) The Chinese yuan strengthened 7 basis points to 6.1615 against the US dollar in its central parity Tuesday, according to the China Foreign Exchange Trading System.
 
 
Bangladeshi plane catches fire at Nepal airport, passengers safe
Kathmandu, July 28 (IANS) A Bangladeshi aircraft caught fire while landing at Kathmandu's Tribhuvan International Airport (TIA) Monday afternoon, officials said.
 
 
 

Latest from the Network

Daily running can lower death risk
Washington, July 29 (IANS) A new US study has suggested that running everyday, even for a few minutes, can significantly reduce a person's risk of dying from cardiovascular diseases. Since time is one of the strongest...
Read more on Business Balla
 
China stocks open higher Tuesday
Beijing, July 29 (IANS) Chinese stocks opened higher Tuesday with the benchmark Shanghai Composite Index opening at 2,179.83 points, up 1.88 points, or 0.09 percent. The Shenzhen Component Index opened at 7,828.35, up...
Read more on Business Balla
 
Apple Reportedly Releasing New MacBook Pros on Tuesday
Apple might be planning to release updated MacBook Pros, as a new report claims that both the upgraded variants of the 13-inch and 15-inch models will be launched on Tuesday.According to Apple Insider, the news has been...
Read more on Apple Balla
 
Armed clashes set Libya's Tripoli ablaze
Tripoli, July 29 (IANS) A huge fire at an oil depot in Libya's capital Tripoli set part of the city ablaze Monday after being hit by warring militia's rocket attacks. The fire, which started Sunday after heavy...
Read more on Politics Balla
 
China's yuan strengthens
Beijing, July 29 (IANS) The Chinese yuan strengthened 7 basis points to 6.1615 against the US dollar in its central parity Tuesday, according to the China Foreign Exchange Trading System. In China's foreign exchange...
Read more on Business Balla
 
Sofia Vergara and Joe Manganiello are 'love-dovey'
Sofia Vergara and Joe Manganiello ''were super love-dovey'' in Miami. The 'Modern Family' actress and the 'True Blood' star, who started dating earlier this month, spent some quality time with her family in Florida over...
Read more on Celebrity Balla
 
Mariah Carey's buyer backs out of deal
Mariah Carey and Nick Cannon have reportedly put their Bel Air mansion back on the market. The couple were thought to have sold the $10 million lavish estate in recent days, but the buyer allegedly backed out of the...
Read more on Celebrity Balla
 
China wants peace cooperation between UN, regional organisations
United Nations, July 29 (IANS) China has called for enhanced peacekeeping cooperation and coordination between the UN and regional organisations to maximise their respective advantages. Liu Jieyi, China's permanent...
Read more on Politics Balla
 
'New Israeli air strikes on Gaza Strip kill 16'
Gaza, July 29 (IANS) New air strikes by Israeli war jets on central and southern Gaza Strip killed 16 Palestinians and wounded more than 50 early Tuesday, medics and witnesses said. Ashraf al-Qedra, spokesman of...
Read more on Politics Balla
 
Kendall Jenner 'flirts' with basketball player
Los Angeles, July 29 (IANS) Model Kendall Jenner was reportedly seen "flirting" with basketball star Chandler Parsons during a meal with her sister Kylie and friends. The 18-year-old and Parsons were joined by Kylie...
Read more on Celebrity Balla