AT&T puts up strong earnings in its first quarter after acquiring WarnerMedia

In WarnerMedia’s first full quarter with AT&T, the telecom giant saw great revenue growth from its new addition, despite the fact that AT&T’s stock hit a 16-year low.

AT&T has reported positive earnings results for Q3, beating its revenue goals and showering WarnerMedia (formerly Time Warner) with the lion’s share of credit.

AT&T puts up strong earnings in its first quarter after acquiring WarnerMedia

The telecom giant acquired Warner back in June for $85B with the intention of building a sustainable on-demand subscription video and advertising business. 

And it seems WarnerMedia has delivered in its first full quarter with the company, boosting AT&T’s revenue by almost 7% year-over-year (around $8.2B).

Xandr also put on a good show

AT&T’s advertising business, Xandr (born largely out of the acquisition), also performed well, boosting ad revenues 34%.

On the flip side, growth of its rival’s digital media business, Verizon’s Oath (formed last year by combining companies like AOL and Yahoo), has stayed flat.

But AT&T’s stock is still on the decline

Ironically, while Warner may have helped earn AT&T some cash, they did no favors in the loyalty department. After 3 consecutive quarters of subscription gains, AT&T saw a surprising loss this quarter, losing 297k TV customers (analysts predicted gains of 53k).

And, since the Warner acquisition did haul in more on-demand subscription revenue this quarter, analysts believe Turner brand’s cable channels likely took the brunt of the subscription dip.

Topics: Streaming Media

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