DALLAS (AP) – AT&T Inc. on Tuesday posted better-than-expected results for its first quarter, lifted by the acquisition of DIRECTV.
The Dallas-based telecommunications giant said it’s on track to reach savings related to the DIRECTV deal of $1.5 billion or better by the end of the year. AT&T acquired DIRECTV last year for $48.5 billion.
The company earned net income of $3.8 billion, or 61 cents per share, for the first three months of the year. Earnings, adjusted for non-recurring costs, came to 72 cents per share.
The results beat Wall Street expectations. The average estimate of 16 analysts surveyed by Zacks Investment Research was for earnings of 69 cents per share.
The telecommunications company posted revenue of $40.53 billion in the period, also beating Street forecasts. Nine analysts surveyed by Zacks expected $40.49 billion.
A year ago, AT&T earned $3.26 billion, or 63 cents per share, on revenue of $32.58 billion.
The company reported that total video subscribers fell 54,000 during the quarter, with U-Verse TV subscribers down by 382,000 as it focused on satellite sales. AT&T added 328,000 satellite subscribers during the quarter, ending the period with 25.3 million video subscribers.
AT&T added 186,000 IP broadband subscribers, ending the quarter with 12.5 million subscribers.
Consumer Mobility saw a 5 percent decline in revenue year over year due in part to lower handset volumes. The company ended the quarter with 54.7 million subscribers, up 92,000. Churn, or customer turnover, was 1.24 percent, compared with 1.2 percent a year ago.
AT&T shares have climbed 11 percent since the beginning of the year, while the Standard & Poor’s 500 index has risen slightly more than 2 percent. They closed Tuesday at $38.09, down 12 cents, and declined another 34 cents in after-hours trading.
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