Published: Fri, October 13, 2017
Finance | By Loren Pratt

AT&T filing: Natural disasters hitting earnings; DirecTV Now at 300K adds

AT&T filing: Natural disasters hitting earnings; DirecTV Now at 300K adds

AT&T Inc. said Wednesday that recent hurricanes to hit the US and Caribbean and earthquakes in Mexico would reduce third-quarter earnings per share by 2 cents and revenue by almost $90 million.

In the three months to the end of September the group saw its DIRECTV NOW service add around 300,000 (net) customers, but total United States video subscribers were down about 90,000.

In the filing, AT&T reiterated its third quarter guidance and lowered it from previously. "Damage to our network and other property, costs to restore services, and revenue declines from waived charges will decrease our reported third-quarter 2017 consolidated revenues almost $90 million and our reported pre-tax earnings about $210 million, or $0.02 per diluted share".

AT&T also stated that the damage to its network, properties, restoring services, and revenue clines from waived charges will negatively impact its third quarter.

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The company's shares fell marginally in extended trading on Wednesday. AT& said the video net losses were driven by heightened competition in the traditional pay-TV markets and OTT services, and hurt by the recent hurricanes and stricter credit standards.

Despite the short-term blemishes, the company said its full-year forecast of $22 billion in capital expenditures and mid-single-digit growth in adjusted earnings remains valid.

AT&T expects almost 300,000 DirecTV Now net adds, though total USA video subscribers will fall by about 90,000.

It expects to report 900,000 fewer handset equipment upgrades than in the year-ago Q3, hitting wireless equipment revenue.

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