AT&T Weathers Record Loss of Wireless Users With Forecast Intact
- No. 2 U.S. carrier expects mid-single digit earnings growth
- DirecTV Now streaming service helps offset pay-TV decline
People walk past an AT&T store in New York on October 23, 2016. AT&T unveiled a mega-deal for Time Warner that would transform the telecom giant into a media-entertainment powerhouse positioned for a sector facing major technology changes. The stock-and-cash deal is valued at $108.7 billion including debt, and gives a value of $84.5 billion to Time Warner -- a major name in the sector that includes the Warner Bros. studios in Hollywood and an array of TV assets such as HBO and CNN. / AFP / KENA BETANCUR (Photo credit should read KENA BETANCUR/AFP/Getty Images)
Photographer: KENA BETANCUR/AFP/Getty ImagesAT&T Inc. maintained its 2017 profit outlook despite losing wireless customers for the first time ever, reflecting rising competitive pressure in the mobile-phone business.
With every major carrier now enticing consumers with unlimited data offers, Dallas-based AT&T shed 191,000 subscribers in the first quarter. Nine analysts surveyed by Bloomberg had predicted a gain of 100,000. The results underscore the company’s strategy to realign the business around media through the $85.4 billion purchase of Time Warner Inc.