For its third-quarter reporting period, the AT&T entertainment group -- which includes its DirecTV unit as well as its broadband business -- saw revenues dip 7%, from $12.5 billion to $11.6 billion.
AT&T points to “declines in linear video subscribers and the revenue impact of a significant pay-per-view event in the prior year,” as well as being up against an extra week of DirecTV’s "NFL Sunday Ticket" the previous year.
Concerning DirecTV, AT&T now has about 25.2 million U.S. subscribers, which includes 1.9 million subscribers for its virtual pay TV service, DirecTV Now. Including improving results from DirecTV Now, there was a decline in total U.S. video subscribers to 297,000, per the company.
AT&T’s stock was down 6.4% to $30.90 in early Wednesday morning trading. The company witnessed other revenue declines in its business wire and Latin American operations.
Making its first financial report with its WarnerMedia businesses, AT&T posted $8.1 billion in revenues for those businesses, up 3% versus the same period a year ago. WarnerMedia' revenues represent 18% of AT&T’s overall $45.7 billion in total revenues for the period, which is up 15% versus the same period the year before.
Comparable Turner network revenues were 8% higher to $3.5 billion; HBO’s revenues growing 3% to $1.6 billion; and Warner Bros. film and TV production unit was down 4% to $3.2 billion.
AT&T’s newly renamed advertising unit Xandr posted 34% growth to $445 million, up 22% when excluding its acquisition of ad-technology company AppNexus.
Looking at all AT&T advertising business -- from Xandr and Turner ad-supported networks and platforms -- third-quarter revenue was at $1.5 billion versus $389 million in the year-ago quarter, due to its acquisition of Time Warner.