trending Market Intelligence /marketintelligence/en/news-insights/trending/AED8UaxTaulyYIpaem6GsQ2 content esgSubNav
In This List

AT&T focused on boosting value of WarnerMedia content, retains 2019 outlook

Blog

Price wars in India: Disney+ Hotstar vs. Amazon Prime Video vs. Netflix

Blog

Volume of Investment Research Reports on Inflation Increased in Q4 2021

Blog

Using ESG Analysis to Support a Sustainable Future

Podcast

Next in Tech | Episode 48: The everything that is Industrial IoT


AT&T focused on boosting value of WarnerMedia content, retains 2019 outlook

AT&T Inc. is focused on creating more value for content produced by its unit Warner Media LLC, CFO John Stephens said Sept. 11 at an industry conference.

Stephens said the telecom giant's content, distribution and advertising businesses are speeding up joint initiatives to drive more viewers to WarnerMedia content, including those from HBO (US). WarnerMedia, for example, is preparing to launch streaming service HBO Max in spring 2020.

WarnerMedia expects revenues to be lower by about $400 million in the third quarter, due to fewer hit movies at Warner Bros. Entertainment Inc.

AT&T expects its consolidated third quarter revenues to be affected by lower wireless equipment revenues due to fewer customers upgrading, but with no impact on margins. It also anticipates losing up to 350,000 subscribers to its premium video offering from the previous quarter, mainly due to tough retransmission negotiations.

The U.S. carrier, however, does not anticipate any adverse impact on its 2019 EPS guidance. It said it remains on track with its deleveraging plans, expecting to meet its 2.5x net debt to adjusted EBITDA leverage target by year-end through free cash flow and asset monetization.

Stephens said AT&T continues to expect its free cash flow to fall within the $28 billion range for full year 2019, while raising between $6 billion and $8 billion by year-end, net of acquisitions. The company's potential earnings would come from the sale of tower assets in the U.S. and Mexico, as well as real estate properties valued at about $500 million.

Within its entertainment group, AT&T expects an increase in premium TV subscriptions by 2020 due to fewer customers on promotional pricing as well as the upcoming debut of live TV service AT&T TV.

AT&T will report its third quarter results on Oct. 23.

Elliott Management Corp., which owns a $3.2 billion stake in AT&T, earlier urged the telco to improve its business and deliver more value to investors. AT&T said it was already executing on many of the hedge fund's strategic recommendations.