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Tag: Randall Stephenson

  • Q4-2015: DirecTV’s subscription numbers up, but ATT Entertainment reports lower video subscribers

    Q4-2015: DirecTV’s subscription numbers up, but ATT Entertainment reports lower video subscribers

    BENGALURU:  AT&T Inc., (ATT), claimant to the largest Pay TV services title in the world reported a net QoQ decline of 26,000 subscribers for the quarter ended December 31, 2015 (Q4-2015, current quarter) for its Entertainment Group (Entertainment). This despite the fact that its recent acquisition DirecTV reported a 1.1 percent QoQ increase (214,000 net additions) in Q4-2015 at 197.84 lakh as compared to 195.70 lakh in Q3-2015. ATT’s other Entertainment segment, the triple play U-verse (broadband internet, IP Telephony and IPTV services) reported a decline of 240,000 video subscribers in the current quarter at 56.14 lakh as compared to 58.54 lakh in the immediate trailing quarter. ATT says that its Entertainment Group focused on profitability and increasingly emphasized satellite sales, including U-verse subscribers switching to satellite.

     

    At December 31, 2015, Entertainment had approximately 522 lakh revenue connections, compared to 344 lakh at December 31, 2014, which included:  Approximately 254 lakh video connections at December 31, 2015 compared to 59 lakh at December 31, 2014. DirecTV’s satellite subscribers as of the July 24, 2015 acquisition date was 195 lakh.; Approximately 143 lakh broadband connections at December 31, 2015 compared to 144 lakh at December 31, 2014. During Q4-2015, ATT’s Entertainment added 171,000 U-verse High Speed Internet subscribers, for a total of 124 lakh at December 31, 2015. Total broadband subscribers declined by 37,000 in the quarter due in part to fewer U-verse sales promotions; Approximately 125 lakh wired voice connections at December 31, 2015 compared to 140 lakh at December 31, 2014. Voice connections include switched access lines and VoIP connections.

     

    “We now have a unique set of capabilities that positions us for growth and also gives us a strategic advantage in providing consumers and businesses the integrated mobile, video and data solutions they want,” said AT&T chairman and CEO Randall Stephenson.

     

    “Our DirecTV integration is going well, and the customer response to our new integrated mobile and entertainment offers is strong. Throughout this year, we plan to launch a variety of new video entertainment packages that give customers even more choices. We’re also seeing terrific results from our expansion into the Mexican mobile market. Our LTE network now covers 355 million people and businesses, and in the quarter we had 2.8 million wireless net additions,” Stephenson added.

     

    ATT’s Entertainment Group (Entertainment) segment includes the results of the US satellite-based operations acquired in July 2015 through the acquisition of DirectTV as well as broadband and wired voice services to residential customers in the US Entertainment revenues for the fourth quarter Q4-2015 were $13.0 billion, more than double the year-ago quarter due to the acquisition of DirecTV as well as strong growth in consumer IP broadband and video, which more than offset lower revenues from legacy voice and data products. Q- 2015 Entertainment operating expenses totalled $11.5 billion compared to $5.9 billion in the fourth quarter of 2014, largely due to the acquisition of DirecTV. The Entertainment operating margin was 11.1 percent, compared to (5.3) percent in the year-earlier quarter with satellite and IP revenue growth and cost efficiencies largely offsetting programming content cost pressure and declines in legacy services.

  • Q4-2015: DirecTV’s subscription numbers up, but ATT Entertainment reports lower video subscribers

    Q4-2015: DirecTV’s subscription numbers up, but ATT Entertainment reports lower video subscribers

    BENGALURU:  AT&T Inc., (ATT), claimant to the largest Pay TV services title in the world reported a net QoQ decline of 26,000 subscribers for the quarter ended December 31, 2015 (Q4-2015, current quarter) for its Entertainment Group (Entertainment). This despite the fact that its recent acquisition DirecTV reported a 1.1 percent QoQ increase (214,000 net additions) in Q4-2015 at 197.84 lakh as compared to 195.70 lakh in Q3-2015. ATT’s other Entertainment segment, the triple play U-verse (broadband internet, IP Telephony and IPTV services) reported a decline of 240,000 video subscribers in the current quarter at 56.14 lakh as compared to 58.54 lakh in the immediate trailing quarter. ATT says that its Entertainment Group focused on profitability and increasingly emphasized satellite sales, including U-verse subscribers switching to satellite.

     

    At December 31, 2015, Entertainment had approximately 522 lakh revenue connections, compared to 344 lakh at December 31, 2014, which included:  Approximately 254 lakh video connections at December 31, 2015 compared to 59 lakh at December 31, 2014. DirecTV’s satellite subscribers as of the July 24, 2015 acquisition date was 195 lakh.; Approximately 143 lakh broadband connections at December 31, 2015 compared to 144 lakh at December 31, 2014. During Q4-2015, ATT’s Entertainment added 171,000 U-verse High Speed Internet subscribers, for a total of 124 lakh at December 31, 2015. Total broadband subscribers declined by 37,000 in the quarter due in part to fewer U-verse sales promotions; Approximately 125 lakh wired voice connections at December 31, 2015 compared to 140 lakh at December 31, 2014. Voice connections include switched access lines and VoIP connections.

     

    “We now have a unique set of capabilities that positions us for growth and also gives us a strategic advantage in providing consumers and businesses the integrated mobile, video and data solutions they want,” said AT&T chairman and CEO Randall Stephenson.

     

    “Our DirecTV integration is going well, and the customer response to our new integrated mobile and entertainment offers is strong. Throughout this year, we plan to launch a variety of new video entertainment packages that give customers even more choices. We’re also seeing terrific results from our expansion into the Mexican mobile market. Our LTE network now covers 355 million people and businesses, and in the quarter we had 2.8 million wireless net additions,” Stephenson added.

     

    ATT’s Entertainment Group (Entertainment) segment includes the results of the US satellite-based operations acquired in July 2015 through the acquisition of DirectTV as well as broadband and wired voice services to residential customers in the US Entertainment revenues for the fourth quarter Q4-2015 were $13.0 billion, more than double the year-ago quarter due to the acquisition of DirecTV as well as strong growth in consumer IP broadband and video, which more than offset lower revenues from legacy voice and data products. Q- 2015 Entertainment operating expenses totalled $11.5 billion compared to $5.9 billion in the fourth quarter of 2014, largely due to the acquisition of DirecTV. The Entertainment operating margin was 11.1 percent, compared to (5.3) percent in the year-earlier quarter with satellite and IP revenue growth and cost efficiencies largely offsetting programming content cost pressure and declines in legacy services.

  • Q3-2015: DirecTV acquisition jacks up AT&T revenue 18.9%

    Q3-2015: DirecTV acquisition jacks up AT&T revenue 18.9%

    BENGALURU: The claimant to the world’s largest Pay TV service provider title in terms of subscriber’s, AT&T reported 26000 net domestic video subscriber adds to its recently acquired company DirecTV in the quarter ended 30 September, 2015 (Q3-2105, current quarter). However, the company lost 92000 of its Uverse (Fiber Optic) Pay TV subscribers in the US and 178,000 video subscribers in total including from its International segment.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

    Subscription numbers have been mentioned in lakhs and revenue and other financial numbers in millions of US dollars.

     

    Four segments add to AT&T’s numbers – Business Solutions; Entertainment and Internet Services (EIS); AT&T Mobility; and International. In this report, numbers of two have been considered – EIS and International since they relate to video and wireless broadband.

     

    AT&T’s GAAP revenue in the current quarter increased 18.1 per cent to $39,091 million as compared to the $33,105 million in the immediate trailing quarter. The company reported a 4.3 per cent decline in GAAP net income attributable to AT&T of $2994 million as compared to the $3,130 million in Q3-2015. The company says that revenue growth in the current quarter was driven by the DirecTV acquisition, which added sales and created cost synergies.

     

    At the time of the DirecTV acquisition, AT&T said that it had about 26 million video customers in the United States and more than 19.1 million customers in Latin America, including Mexico and the Caribbean, including DirecTV subscribers. As on 30 September, 2015, AT&T has reported 379.94 lakh video subscribers, of which 195.7 lakh are DirecTV connections and 58.54 lakh are Uverse connections in the US.

     

    “We now have integrated solutions that are unlike any competitor in the market. With our national wireless and video capabilities, as well as our extensive broadband network, we now have assets that make us a unique competitor and the first scaled, fully-integrated US service provider,” said AT&T chairman and CEO Randall Stephenson.

     

    “We turned in outstanding financial results in the quarter. Our early integration efforts with DirecTV are going very well and we’ve just begun to scratch the surface on the video, wireless and broadband cross-selling opportunities,” Stephenson added.

     

    AT&T’s EIS segment had 526.37 lakh revenue connections as on 30 September, 2015 including 128.91 lakh legacy voice wireline connections besides video and broadband internet connections.

     

    As a consequence of the DirecTV acquisition on 24 July, 2015 and subsequent restructuring of segments, GAAP operating video revenue of the Entertainment and Internet services segment in the current quarter multiplied to $7162 million as compared to the $1719 million in the corresponding year ago quarter. Besides, the company’s International segment also reported Video revenue of $945 million in the current quarter.

     

    AT&T’s EIS segment reported GAAP operating revenue of $10858 million in the current quarter as compared to the $5553 million in Q3-2014 because of the DirectTV acquisition and restructuring. The segment has reported a GAAP operating profit of $1021 million as compared to a loss of $337 million in Q3-2014 and a loss of $208 million in the immediate trailing quarter.

     

    AT&T’s Entertainment and Internet Services (EIS) segment had 143.22 lakh broadband internet subscribers (121.85 lakh IP and 21.37 lakh DSL) as 30 September, 2015 as compared to 144.65 lakh (110.1 lakh IP and 34.53 lakh DSL) in the corresponding year ago quarter. The segment reported GAAP revenue of $1685 million from broadband internet services in the current quarter as compared to the $1414 million in Q3-2014.

     

    Legacy voice and data services reported GAAP revenue of $1419 million in the current quarter as compared to the $1834 million in Q3-2014 and $1516 million in the immediate trailing quarter.

     

    The company’s International segment reported GAAP revenue of $1526 million in the current quarter and an operating loss of $87 million. Figures for the corresponding year ago quarter have not been mentioned.

  • AT&T – DirecTV’s $48.5 billion merger gets FCC nod

    AT&T – DirecTV’s $48.5 billion merger gets FCC nod

    MUMBAI: The Federal Communications Commission (FCC) has granted the approval of the transfer of control of licenses and authorizations from DirecTV to AT&T Inc. 

     

    The approval will allow AT&T to acquire DirecTV for a sum of $48.5 billion and merge the two companies into one combined entity. 

     

    FCC chairman Tom Wheeler said that he had approved the deal with certain conditions, which are applicable for the next four years. 

     

    The newly combined company – the largest pay TV provider in the United States and the world – will offer millions of people more choices for video entertainment on any screen from almost anywhere, any time. 

     

    “Combining DirecTV with AT&T is all about giving customers more choices for great video entertainment integrated with mobile and high-speed Internet service. We’ll now be able to meet consumers’ future entertainment preferences, whether they want traditional TV service with premier programming, their favorite content on a mobile device, or video streamed over the Internet to any screen. This transaction allows us to significantly expand our high-speed Internet service to reach millions more households, which is a perfect complement to our coast-to-coast TV and mobile coverage,” Stephenson said. “We’re now a fundamentally different company with a diversified set of capabilities and businesses that set us apart from the competition,” said AT&T chairman and CEO Randall Stephenson. 

     

    AT&T now is the largest pay TV provider in the US and the world, providing service to more than 26 million customers in the US and more than 191 million customers in Latin America, including Mexico and the Caribbean. Additionally, AT&T has more than 132 million wireless subscribers and connections in the US and Mexico; offers 4G LTE mobile coverage to nearly 310 million people in the US; covers 57 million US customer locations with high-speed Internet; and has nearly 16 million subscribers to its high-speed Internet service. 

     

    Current customers of AT&T and DirecTV do not need to do anything as a result of the merger. They’ll continue to receive their same services, channel lineups, and customer care. The integration of AT&T and DirecTV will occur over the coming months. In the coming weeks, AT&T will launch new integrated TV, mobile and high-speed Internet offers that give customers greater value and convenience. 

     

    With the completion of its DirecTV acquisition, AT&T will continue to deploy its all-fiber GigaPower Internet access service – the company’s highest-speed Internet service, which allows you to download a TV show in as little as three seconds. When the expansion is complete, AT&T’s all-fiber broadband footprint will reach more than 14 million customer locations. 

     

    AT&T also announced that John Stankey will be CEO of AT&T Entertainment & Internet Services, responsible for leading its combined DirecTV and AT&T Home Solutions operations. Stankey will report to Stephenson. DirecTV president, chairman and CEO Mike White will now retire. 

     

    “Mike is one of the world’s top CEOs and a great leader who built DirecTV into a premier TV and video entertainment company spanning the US and Latin America. He has been a terrific partner and friend, and his legacy will be an important part of our combined company,” Stephenson said. 

     

    AT&T is also developing unique video offerings for consumers through, among other initiatives, its Otter Media joint venture with The Chernin Group. The joint venture was established to invest in, acquire and launch over-the-top (OTT) video services. This includes its purchase of a majority stake in Fullscreen, a global online media company that works with more than 50,000 content creators who engage 450 million subscribers and generate 4 billion monthly views. 

     

    Under the terms of the merger, DirecTV shareholders received 1.892 shares of AT&T common stock, in addition to $28.50 in cash, per share of DirecTV. 

     

    The DirecTV acquisition significantly diversifies AT&T’s revenue mix, products, geographies and customer bases. As a result of this acquisition, as well as AT&T’s acquisition of Iusacell and Nextel Mexico, AT&T expects that, by the end of 2015, its largest revenue streams will be, in descending order: Business Solutions (both wireless and wireline); Entertainment & Internet; Consumer Mobility; and International Mobility and Video. 

     

    As part of FCC’s approval of the transaction, AT&T has agreed to the following conditions for the next four years: 

     

    1) Within four years, AT&T will offer its all-fiber Internet access service to at least 12.5 million customer locations, such as residences, home offices and very small businesses. Combined with AT&T’s existing high-speed broadband network, at least 25.7 million customer locations will have access to broadband speeds of 45Mbps or higher. 

     

    2) Within its wireline footprint, the company will offer 1Gbps service to any eligible school or library requesting E-rate services, pursuant to applicable rules, within the company’s all-fiber footprint. 

     

    3) Within AT&T’s 21-state wireline footprint, it will offer discounted fixed broadband service to low-income households that qualify for the government’s Supplemental Nutrition Assistance Program. In locations where it’s available, service with speeds of at least 10Mbps will be offered for $10 per month. Elsewhere, 5Mbps service will be offered for $10 per month or, in some locations, 3Mbps service will be offered for $5 per month. 

     

    4) AT&T’s retail terms and conditions for its fixed broadband Internet services will not favor its own online video programming services. AT&T can and will, however, continue to offer discounted integrated bundles of its video and high-speed Internet services. 

     

    5) AT&T must submit to the FCC new interconnection agreements it enters into with peering networks and on-net customers for the exchange of Internet traffic. The company will develop, in conjunction with an independent expert, a methodology for measuring the performance of its Internet traffic exchange and regularly report these metrics to the FCC. 

     

    6) AT&T will appoint a Company Compliance Officer to develop and implement a plan to ensure compliance with these merger conditions. Also, the company will engage an independent, third-party compliance officer to evaluate the plan and its implementation, and submit periodic reports to the FCC.

  • AT&T president Aaron Slator sacked for sending racially offensive messages

    AT&T president Aaron Slator sacked for sending racially offensive messages

    NEW DELHI: American AT&T, which is facing a $100 million discrimination lawsuit, has fired its president Aaron Slator, who allegedly sent racially offensive images from his phone.

     

    AT&T said in a statement that “there is no place for demeaning behaviour within AT&T and we regret the action was not taken earlier.”

     

     An assistant who was asked to transfer data to a new smartphone found the image on Slator’s phone, according to the lawsuit filed on Monday by Knoyme King, a 50-year-old black woman who worked for Slator.

     

     One of the images, apparently of an African child dancing with the caption “It’s Friday…” followed by a term offensive to African Americans, had been sent in a text describing it as an “oldie but a goodie,” the lawsuit said.

     

     The suit, filed in Los Angeles Superior Court, names as defendants Slator, AT&T, AT&T CEO Randall Stephenson, other executives and board member Joyce Roche.

     

    Slator was president of content and advertising sales, managing its multibillion-dollar budget for content acquisition that is consumed by subscribers of Dallas-based AT&T’s U-verse TV service.

     

     King’s lawyer Skip Miller told The Associated Press that the lawsuit will continue. He said the company failed to take action earlier, despite the issue being brought to the attention of its board of directors and human resources department. “This is an AT&T problem, it’s not just an Aaron Slator problem,” he said.

     

     The lawsuit alleges that King was passed over for promotions and given inferior raises because of her race, that she was mistreated and that attempts were made to have her leave the company. King has worked 30 years for AT&T and is still employed there, Miller said.