The company said third-quarter revenues and earnings would be lower than expected as a result of several natural disasters during the period, including hurricanes and earthquakes. However, damage to its network and other property, including the cost to restore services and waive charges, are expected to result in a drop of Q3 consolidated revenues of almost $90 million, with pre-tax earnings of $210 million (2 cents per diluted share).
AT&T said it added roughly 300,000 subscribers to DirecTV Now, its cheaper option for customers who want to stream television over the internet. "We expect further reductions in the fourth quarter as we continue to assess damage to our network and fully restore service".
AT&T attributed the lower total video adds to more intense competition in the traditional pay-TV markets and OTT services, severe storms that hit the country, and tighter credit standards.
The No. 2 USA wireless carrier, which owns satellite television service DirecTV, said in a filing on Wednesday that it lost 90,000 US video subscribers in the quarter due to intense competition in traditional pay TV markets and the impact of the recent hurricanes.
Abbott Laboratories (NYSE:ABT) reported Sales of 23.61 Billion
Thomaspartners Inc decreased its stake in Abbott Labs ( ABT ) by 4.1% based on its latest 2017Q2 regulatory filing with the SEC. Cohen Klingenstein Ltd Liability Com holds 0.04% of its portfolio in Abbott Laboratories (NYSE: ABT ) for 5,886 shares.
The company continued to expand its postpaid smartphone base even with almost 900,000 fewer handset equipment upgrades, against the year before. The lower upgrade numbers will adversely affect wireless equipment revenue, but will not affect "gross adds".
The company also announced that, effective July 1, it is reporting prepaid IoT connections (mainly for vehicle connectivity) as a separate class in its subscriber categories, which will result in 97,000 additional prepaid net adds in Q3.
AT&T said it lost 90,000 video subscribers in the U.S.in the third quarter. This will result in 97,000 additional prepaid net adds in the quarter with a corresponding decline in connected device net adds.
Information set forth in this filing contains financial estimates and other forward-looking statements that are subject to risks and uncertainties. AT&T disclaims any obligation to update or revise statements contained in this filing based on new information or otherwise.