AT&T Revenue Comes Up Short, Earnings Reach Expectations

DirecTV is beginning to show an impact on the bottom line of AT&T.

AT&T posted 63 cents per share in adjusted earnings for its 2015 fourth quarter, which was in line with expectations on Wall Street.

The company said that the adjusted profits would have been higher by 3 cents per share but there was an accounting change that was caused by the acquisition last year of DirecTV for $49 billion.

Revenues for the fourth quarter reached $42.1 billion equal to an increase of 22% compared to the same three month period one year ago.

Analysts expected revenue to reached $42.7 billion. AT&T said that close to half the shortfall of $600 million was related to a change in accounting. For the complete year, AT&T reported $148.5 billion in revenue, which was up by more than 10.8% compared to the 2014.

During the fourth quarter, AT&T added more than 2.8 million new customers in its wireless segment, which is important as it makes its push into the all things connected market of Internet of Things. AT&T says it connects over 26.2 million different devices, 1.2 million were added in just the fourth quarter alone.

The company reported strong results from its growth into the mobile market in Mexico where it now had close to 8.7 million customers.

Randall Stephenson the CEO and Chairman at AT&T said the company has a unique set of capabilities, which positions it for growth and gives it a big strategic advantage in providing businesses and consumers the integrated video, data and mobile solutions wanted.

The integration of DirecTV is going strong, added the CEO and customer response to the new integrated entertainment and mobile offers was strong.

Throughout the year, the company said it would launch a variety of new packages of video entertainment that will give customers that much more to choose from

AT&T as far as its long term guidance expects growth of consolidated revenue in the double digits during 2016 and growth in adjusted earnings from mid single digits or higher.

 

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