AT&T raises annual forecast as its streaming service HBO Max expands

AT&T raises annual forecast as its streaming service HBO Max expands

by Pranali Mehta

AT&T Inc. recently announced to have raised full-year financial forecast as the telecoms company recovered from the pandemic with increased wireless & internet customers and surpassed analyst estimations for phone subscribers and proceeds in the second quarter.

This comes as AT&T is aligning its expensive media investments to focus on its primary business of offering phone and internet services.

Before closing the deal to merge its media content with Discovery, AT&T mentioned that WarnerMedia continued to draw customers to streaming service HBO Max and garnered higher revenues as live sports and televised events resumed after the pandemic.

The company recorded 789,000 new paid phone subscribers who pay monthly charges during the quarter ended June 30, surpassing the estimated number of 278,000 new subscribers.

WarnerMedia recorded 2.8 million U.S. subscribers for its streaming platform HBO Max and premium channel HBO during the quarter because of the new movies like Lin-Manuel Miranda's "Mortal Kombat" and "In the Heights"

Jason Kilar, WarnerMedia CEO, stated that the increase in new digital video subscribers is an indication that the streaming media market is still expanding in the U.S., despite Netflix witnessing a loss of 430,000 subscribers in the U.S. and Canada in the second quarter.

AT&T raised its forecast to between 70 million and 73 million global HBO Max subscribers by the year end from its previously anticipated 67 million to 70 million subscribers.

HBO and HBO Max currently have 67.5 million subscribers worldwide as compared to Netflix which has 209 million subscribers.

The Dallas-based company also stated that its deal to sell a stake in DirecTV is expected to close within a few weeks, reducing the company’s total revenues by USD 9 billion for the remaining of the year.

Meanwhile, AT&T CEO John Stankey mentioned that the company remains committed in setting up WarnerMedia and DirecTV for success.

Excluding the effect of the DirecTV and TPG deal, AT&T is anticipated to witness a growth between 2% to 3% for 2021.

Source Credits –

https://www.usnews.com/news/technology/articles/2021-07-22/at-t-beats-wireless-subscriber-additions-estimate-on-5g-demand

Pranali Mehta

A chemical engineer by qualification, Pranali Mehta dutifully walked down the slated path and worked in a chemical firm for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience in content writ Read more...