AT & T’s total revenue of $ 44 billion increased nearly 8% from the prior-year period and beat the analyst consensus estimate of $ 42.6 billion. Earnings per share rose 7% to 89 cents, well ahead of analysts’ outlook of 79 cents.
Over the deadline
TO WarnerMedia, revenue increased 31% to $ 8.8 million in the quarter, which ended June 30, as comparisons to the approximate quarter of 2020 became favorable. Advertising revenue increased 49% as sports took shape again.
Several Warner Bros movie titles were scored during the quarter, both in theaters and on HBO Max, as the studio continued its day-and-date release strategy. Godzilla vs. Kong, released the day before the quarter began, collected most of its returns during the period.
HBO Max, which launched in May 2020 amid the coronavirus pandemic, has now surpassed 67 million global subscribers. AT&T increased its subscriber guide to between 70 and 73 million subscribers by the end of 2021 (previously, the number was 67 million to 70 million).
At the end of the second quarter of 2020, HBO and HBO Max had 36.3 million subscribers and 55.6 million worldwide. The company said in its earnings report that HBO / HBO Max’s national subscriber count consists of US accounts “with access to HBO Max (including wholesale subscribers who may not have logged in).” AT&T has included access to transmission service with various pay TV and wireless subscription packages, as well as making it available as a direct retail product at various distribution points.
WarnerMedia’s strong performance came when AT&T announced a spin-off of the entertainment company into a merged entity that would be controlled by Discovery. That deal, revealed in May, is expected to close in mid-2022.
Some rivals have reached a broader scale than WarnerMedia in the pursuit of streaming. Disney has reached nearly 104 million subscribers with Disney + and Netflix this week reported reaching 209 million globally. But HBO Max’s average revenue per user is near the top of the class in the industry. At $ 15 a month, it positions itself as a more solid offering, especially with Warner Bros titles of the day and date, although in 2022 the list of films is due to return to many exclusive theatrical functions before airing.
In addition to the WarnerMedia Discovery plan, the spin-off of DirecTV In a new company in which private equity firm TPG will have a 30% stake, it will close in the coming weeks, AT&T said in its earnings report.
AT&T has struggled to reduce its debt load after swallowing DirecTV and Time Warner. None of the acquisitions were entirely successful, charging shareholders with tens of billions in losses.