On the same day that DISHNetwork Corp. reportedits largest quarterly subscriber losses on record, AT&T Inc.'s DIRECTV said it continued to add subscribersin the second quarter.
The company reported 342,000 U.S. DIRECTV net adds and 38,000global TV net adds, noting that DIRECTV has grown by nearly 1 million U.S. satellitenet adds since the acquisitionof DIRECTV closed in July 2015.
"More than 80% of our domestic video business is now onDIRECTV platforms," AT&T CFO John Stephens said during a July 21 earningsconference call.
Stephens also noted the company is making solid progress on bundlingits in-home video offerings with its wireless services. The company currently hasroughly 5 million customers that have bundled in-home video — including both U-verseand DIRECTV customers — and wireless. "We've seen very positive results. Soit is going well," he said.
Stephens expects to see even more growth in this area as thecompany rolls out its over-the-top offering, DIRECTV Now, at the end of the year.
Calling the offering a "game changer," Stephens said,"DIRECTV Now is scheduled to launch later this year, and we expect the millionsof people who don't now subscribe to a video service and prefer a streaming optionwill be impressed."
While Stephens did not provide a precise launch date, he notedthe company is on track in terms of developing the necessary technology and signingthe necessary contracts for content.
"You think about the contracts we need to get the stackingrights and digital rights, those are going well," he said. "It's justa matter of getting all of those things coordinated together, and then make sureit's the highest-quality product you can have at launch. But we are confident inthat process and feel good about targeting the end of this year to get that out."
AT&T Wireless recorded 2.1 million net additions, drivenby connected devices, Mexico and Cricket customers. The total includes 1.4 millionNorth American net adds. Looking at prepaid vs. postpaid numbers, North Americanprepaid subscriber net adds were 979,000, of which 365,000 were domestic. NorthAmerican postpaid subscriber net adds were 422,000, of which 257,000 were domestic.
Overall at the company, quarterly operating revenue rose 22%year over year to $40.5 billion. Second-quarter net income attributable to AT&Ttotaled $3.4 billion, or 55 cents per share, compared to $3.1 billion, or 59 centsper share, in the year-ago quarter. Adjusting for amortization, merger- and integration-relatedcosts, EPS totaled 72 cents, up year over year from 70 cents in the year-ago quarter.
The S&P Capital IQ consensus EPS estimate for the just-endedquarter was 72 cents on a normalized basis and 65 cents on a GAAP basis.