AT&T Inc. reported less quarterly revenue than expectations by around three percent. It is an American multinational group of companies and subsidiaries, offering their services in different sectors. Discounts and promotions are always being the basic strategies of the company to drive their business growth and stabilize their business of pay-TV in the market. AT&T is feuding with the US Department of Justice in a courtroom for the deal of Time Warner Inc. for US$ 85.4 billion. It is important for the company to compete for advertising dollars and the market is reliable on the content of advertising.
The pay-TV – entertainment business performed under their expectations, and more than 4.5 percent than the forecasted amount. Net income of the company expected to reach up to US$ 4.76 billion, or maximum up to 75 percent in a quarter. Earlier, the company was able to achieve US$ 3.47 billion or 56 percent per share. Analysts observed the fall in total revenue was around US$ 38.04 billion in terms of percentage – 3.4 percent. The net income of US$ 39.31 billion was expected, many analysts said.
The company owns the services in satellite television – DirecTV, but it lost 187,000 loyal customers based in the US. However, it is a better number than expectations of several analysts.
The Time Warner deal will add up the many impressive shows and movies owned by the organization including “Game of Thrones” and “Justice League.” Of course, adding up these shows and movies in their offering will be the bonus point for the company. It will be a billion-dollar business for the company to stand against the tech giants Google and Facebook.
Additionally, the company is planning to launch the new video and entertainment service named as AT&T Watch. It will be a package for entertainment excluding sports, just at the price of US$ 15 per month, said the Chief Executive Officer of AT&T, Randall Stephenson. His statement surprised their investors.