AT&T Inc. (NYSE:T) is coming off an impressive fourth-quarter supported by continued subscriber growth in wireless, fiber, and HBO mix. The wireless carrier also ended a challenging year with strong cash flows and financial strength. Likewise, the carrier capped 2020 with solid revenues and earnings per share that exceeded analysts’ predictions.
AT&T Q4 Results
Increased focus on broadband connectivity and software-based entertainment is already paying out according to Chief Executive officer John Stankey. Similarly, the company had one of the best full years of postpaid post-net ads benefiting from high-quality wireless customer base investments.
AT&T has already surpassed the 1 million mark on fiber broadband net ads. The release of blockbuster shows such as Winder Woman 1984 also helped drive growth on the HBO max. The subscription base at HBO has already risen to over 41 million.
The Dallas based carrier reported a fourth-quarter net loss of $13.88 billion or a loss of $1.95 a share. Earnings adjusted for one-time gains came in at 75 cents a share above earnings of 73 cents a share expected by the market.
The telecommunication heavyweight posted revenues of $45.69 billion topping consensus estimates of $44.56 billion. The downside to the earnings report is the contraction being experienced in the company’s entertainment unit. The company says it lost 617,000 premium pay-tv subscribers including DirecTV satellite business.
AT&T Tailwinds
The COVID-19 pandemic continues to impact revenues across most businesses, particularly the Warner Media and domestic wireless service revenues. For fiscal 2021, the telecom and media company expects revenue growth in the 1% range as analysts predict the growth of 1.4% and a free cash flow of $26 billion.
AT&T has not been on a fine run in the market, its sentiments having been hit hard by management changes and its high debt. Likewise, the company has confirmed plans to sell part of satellite TV broadcaster DirecTV as it looks to raise some cash money to settle some debt. The stock continues to trade sideways lagging the broader stock market.