AT&T Inc, U.S. number second, wireless carrier reported fourth quarter revenues lower than expectations, since it added fewer mainstream wireless customers than a year ago due to solider rivalry from competitors. The shares of the company went down near 2%.
The wireless company had 526,000 net new postpaid customers, down 38.4% from 854,000 a year ago. For its prepaid service, the company had 469,000 net new customers, reported yesterday.
Total operating revenue advanced 22.3 % to $42.12 billion, faintly missing average estimate of analysts that is $42.75 billion, reported Thomson Reuters I/B/E/S. Earnings of 63 cents, eliminating certain items, were in line with the forecasts of analysts. Average revenue per postpaid wireless customer dipped 2 % in the fourth quarter ended Dec. 31.
The company has been pursuing new revenue streams and is betting on its 2015 acquisition of the DirecTV satellite TV business to help beef up its bundles of broadband, TV, fixed-line and cellular phone services. It has extended in Mexico after the contemporary purchase of the third- and fourth-largest wireless carriers in that country.
Earlier this month, for subscribers of its AT&T U-Verse home television service or DirecTV service, AT&T presented an indefinite wireless data plan. Executives reported on a conference call after the earnings release that, half a million subscribers in a period of two weeks, have signed up for unlimited data.
It added 214,000 DirecTV customers, while 240,000 left its U-Verse TV service, said AT&T. Net income attributable to the company was $4.01 billion, or 65 cents per share, matched to a loss of about $4 billion, or 77 cents per share.
AT&T is announcing quarterly earnings for the second time since completing its acquisition of $48 billion of DirecTV, which made it the biggest pay-TV operator of the world.
In 2016, AT&T anticipates capital expenditures around the $22 billion range. It guess adjusted earnings in the mid-single digit range and double-digit consolidated revenue growth.
