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AT&T provided little evidence that it's tuned in to Web video, even as its mobile operations continued to hum along in the first quarter.
The Dallas telecommunication giant released first-quarter eaings on Tuesday but stayed mostly mum on its plaed online video service.
Last month, AT&T said it will launch three Web video services under its DirecTV brand. The services are expected to roll out later this year but the company hasn't released many specifics, including minor details like what chaels will be available or how much they'll cost.
The trio of packages are part of AT&T's attempt to marry its TV and wireless services, which would make a wide-range of video available to anyone with an Inteet coection from the company. AT&T is already the largest pay-TV provider in the US thanks to its $49 billion acquisition of DirecTV in July 2015. That's fine for an older customer base, which might want to buy a bundle of DirecTV and wireless services. But those pesky milleials aren't terribly interested in paying a traditional cable TV bill.
"We're seeing good momentum with our initial integrated wireless, video and broadband offers," said Randall Stephenson, AT&T CEO and chairman, in a release. "We'll expand the integrated choices for customers in the fourth quarter when we launch our new video streaming services."
AT&T's video strategy is still a little fuzzy. The company added 328,000 satellite subscribers in the first quarter, but total video subscribers were down 54,000 due to a decline in U-Verse TV subscribers.
In addition to its video, AT&T is still focusing on its wireless customers. The carrier said it added 1.8 million US wireless subscribers in the three-month period ended in March, mostly driven by its prepaid brands and coected devices. AT&T also added 500,000 customers in Mexico.
The company met Wall Street analysts' expectations. It reported first-quarter eaings, excluding some costs and expenses, of 72 cents per share on $40.5 billion in revenue, up from about $32.6 billion a year earlier. Analysts expected the company to post a profit of 69 cents a share on $40.5 billion of revenue, according to Thomson Reuters.
Shares fell slightly about 1 percent to $37.50 in after-hours trading.
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