CALIFORNIA: AT&T Inc posted a surprise gain in US wireless subscribers on Wednesday but quarterly profit rose less than expected, held back by its declining satellite TV business, sending its shares down more than 3 per cent before the bell.
The second-largest US wireless carrier has been reducing its dependency on the phone business with its $85-billion acquisition of Time Warner this year, but is struggling to grow in the TV market as viewers ditch satellite and cable for cheaper online packages.
AT&T gained a net 69,000 phone subscribers in the United States who pay a monthly bill, compared with analysts’ estimates of a net drop of 22,000 subscribers, according to research firm FactSet.
Wall Street analysts watch the so-called “postpaid” subscriber figure because those customers pay a monthly bill and are more valuable to the company.
AT&T lost more satellite TV customers as viewers continue to get rid of pricy TV packages in favour of cheaper streaming video services. — Reuters
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