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AT&T’s Q3 2017 Earnings Fall Below Market Expectations

Earlier today, AT&T released its quarterly earnings report for Q3 2017, and its numbers just fell short of analysts’ expectations. The second biggest mobile operator in the United States reported an adjusted earnings of 74 cents per share on revenue of $39.7 billion. That earnings per share figure just falls below the 75 cents per share on revenue of $40.1 billion projected by Wall Street. Moreover, this year’s third quarter earnings have decreased slightly compared to that of the same quarter last year (74 cents per share on revenue of $40.9 billion).

According to AT&T, the year-over-year decline in earnings can be mainly attributed to the decrease in legacy wireline services and in consumer mobility. Natural disasters such as earthquakes and hurricanes that had hit in the last few months also had an impact on the company’s earnings for Q3 2017. The carrier estimates that it would have reached revenues of $39.8 billion if not for the recent calamities.

From July to September of this year, AT&T had managed to gain 3 million wireless net additions. That 3 million figure can be further broken down into 2.32 million customers coming from the United States, while the remaining 700,000 from Mexico. In the US, AT&T gained 117,000 postpaid, 324,000 prepaid and 2.27 million connected device customers but lost 392,000 reseller customers.

The carrier’s customer turnover rate for postpaid phones was at 0.84 percent for the third quarter of this year, which is a record third quarter postpaid phone churn for AT&T. The company was quick to credit the success of its wireless and entertainment video bundle for helping achieve a much improved churn (during the third quarter of last year, postpaid phone churn was at 1.05 percent).

Speaking of entertainment, AT&T also recorded IP broadband net additions of 125,000, plus total broadband net additions of 29,000. Furthermore, the number two carrier in the country also gained close to 300,000 DirecTV Now net additions, which had contributed to offsetting its decrease in traditional TV customers.

Source: The Street

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  1. Their "prepaid" service isn't even mentioned once, so I'd say this belongs on Postpaid Phone News.

    1. "In the US, AT&T gained...324,000 prepaid...customers."

    2. Only 227,000 new prepaid customers were phones. The rest were iOT devices.

    3. Could've sworn I CTRL+F'd, but maybe my mobile browser was on the fritz.

    4. An early version of this post was missing the breakdown by customer type.

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