AT&T Inc. (NYSE: T) reported better-than-expected revenue for the second quarter of 2019 while earnings came in line with estimates. The consensus estimate was for earnings of $0.89 per share on revenue of $44.8 billion. Shares were down 1.6% in premarket hours on Wednesday.
Consolidated revenues of $45 billion were up 15.3% year-over-year, mainly due to the Time Warner acquisition.
Net income attributable to AT&T was $3.7 billion, or $0.51 per share, compared to $5.1 billion, or $0.81 per share, in the year-ago quarter. Adjusted EPS was $0.89.
During the quarter, revenue declines in legacy wireline services, Vrio, domestic video and wireless equipment were offset by the addition of WarnerMedia and growth in domestic wireless services, strategic and managed business services, IP broadband and Xandr.
In the Communications segment, revenues were $35.5 billion, up 0.3% year-over-year, reflecting gains in Mobility that were partially offset by declines in Entertainment Group and Business Wireline.
Mobility revenues grew 1.3%, with a growth in service revenues offset by declines in equipment revenues. The company reported total net adds of 3.9 million to reach 159.7 million in service. Entertainment Group revenues dipped 1% hurt by declines in TV subscribers and legacy services. Business Wireline revenue was down 0.3%.
Revenues at WarnerMedia grew 5.5% year-over-year to $8.4 billion, driven mainly by the consolidation of Otter Media, higher Warner Bros. revenues and gains at Turner and Home Box Office.
In Latin America, revenues fell 9.9% year-over-year to $1.8 billion, due to foreign exchange pressures from revenues in multiple currencies. Revenues were up 4% in Mexico and down 17.7% in Vrio. Xandr revenues grew 23.7% to $485 million.
For fiscal year 2019, the company expects low single digit adjusted EPS growth and free cash flow guidance in the $28 billion range.
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