Results

AT&T Inc.

01/10/2019 | Press release | Distributed by Public on 01/10/2019 18:57

TitleJohn Stephens, AT&T Chief Financial Officer, Speaks at Citi Conference

Stabilizing Entertainment Group EBITDA. Stephens said AT&T remains confident in its ability to keep EBITDA levels in its Entertainment Group stable in 2019 as the company focuses on cost controls, profitability and retaining customers with offers that meet their needs. EBITDA support will come from improving video ARPU as promotional pricing expires for about 2 million linear video subscribers and as annual price increases help offset content cost increases.

The company will also focus on enhancing profitability in its over-the-top offerings.

At the end of the second quarter last year, about 500,000 DIRECTV NOW subscribers were on $10 per month promotional pricing plans; By yearend 2018, virtually no subscribers remained on this plan. The company expects this and the expansion of its cloud DVR offer for DIRECTV NOW will support ARPU growth in 2019.

AT&T also expects growth in broadband revenues in 2019 driven by customer additions and ARPU increases as it expands its fiber network, which offers higher speeds and high reliability. By mid-2019, AT&T expects to cover 14 million customer locations, a nearly 30% increase from the end of 2018.