Home / Networking / AT&T Q1 mixed amid COVID-19, plans more 5G investment as network traffic surges

AT&T Q1 mixed amid COVID-19, plans more 5G investment as network traffic surges


att-q1-2020.png

AT&T said it is seeing unprecedented volumes on its network due to the COVID-19 pandemic as it reported mixed first quarter results. 

The telecom and media company reported first quarter earnings and revenue that fell short of expectations, withdrew its outlook due to COVID-19 and said it had enough cash flow to invest in growth areas such as 5G.

AT&T reported adjusted first quarter earnings of 84 cents a share on revenue of $42.8 billion, down from $44.8 billion a year ago. Wall Street was expecting AT&T to report adjusted first quarter earnings of 85 cents a share on revenue of $44.2 billion. AT&T’s net earnings in the first quarter were $4.6 billion, or 63 cents a share. 

AT&T said that COVID-19 had a $433 million impact on its EBITDA and shaved 5 cents a share from its results in the quarter. The telecom and media company said it took a hit due to lower wireless equipment sales and lower sports-related advertising largely due to the cancellation of the 2020 NCAA Division 1 Men’s Basketball Tournament.

Wireless service revenue showed growth, but video, theatrical and legacy service revenue fell.

In wireless, AT&T said service revenue was up 2.5% with a postpaid phone churn of 0.86%. AT&T added 163,000 postpaid net phone additions. In entertainment, AT&T said it finished the quarter with 18.6 million premium TV subscribers with 897,000 net losses. The company added 209,000 AT&T Fiber connections.

CEO Randall Stephenson said that AT&T’s cash position and cash flow will enable it to adjust capital allocation plans and invest in 5G, broadband and HBO Max and pay down debt. 



Source link

About admin

Check Also

Disaster-filled fourth quarter drags down Optus full-year results

Image: Asha Barbaschow/ZDNet Optus has seen a quarter, filled with bushfires and coronavirus, take an ...