AT&T Blames Hurricanes, Mexico Earthquake For Q3 Revenue, Video Subscriber Losses


Shares in AT&T Inc (NYSE:T) were lower in pre-market trading after the telecoms giant issued a profit warning on Wednesday evening.

AT&T Inc. said Wednesday that recent hurricanes to hit the US and Caribbean and earthquakes in Mexico would reduce third-quarter earnings per share by 2 cents and revenue by almost $90 million.

The natural disaster and the series of hurricanes that hit various parts of the US shaved about $90 million off revenue in the period and dinged pre-tax earnings by about $210 million, or 2 cents a share.

As more customers cut their cable and turn to streaming services, Dallas-based AT&T says it expects to lose about 390,000 traditional pay-TV subscribers this quarter, according to financial documents filed with the Securities and Exchange Commission.

Brooklyn home invasion leaves man, 91, dead and wife injured, NYPD says
Cops plan to have Ethlin Thompson recreate for them what happened as soon as she's well enough to return home from the hospital. . He also added that Ethlin had mentioned that she had lost the key to her lockbox and was planning to call a locksmith.

The figure is higher than Wells Fargo analysts' estimate of 200,000 net adds for the OTT service; however AT&T's estimate of 90,000 total video net losses is higher than the 50,000 net losses forecast by the firm.

The decline of traditional video subscribers has a negative impact on AT&T's Entertainment Group revenues and margins; the group said the third quarter adjusted consolidated operating income margin would therefore "be essentially flat" versus the year-ago third quarter.

It expects to report 900,000 fewer handset equipment upgrades than in the year-ago Q3, hitting wireless equipment revenue. This trend will however not affect gross adds and AT&T continues to see low postpaid phone churn levels.