NEW YORK (P3P) – AT&T Inc (T.N) reported quarterly revenue that beat analysts’ estimates on Wednesday, helped by tax cuts and new wi-fi subscribers, and its chief government voiced confidence the corporate will full its $85.four billion acquisition of Time Warner Inc (TWX.N).
The U.S. Division of Justice sued to dam the deal final yr on grounds that it was anticompetitive. A trial is slated to start on March 19.
“Whereas we stay open to discovering some cheap options to deal with the federal government’s concern, we do anticipate this case will finally be litigated in court docket,” Chief Govt Randall Stephenson advised analysts on a convention name. He added, “We stay very assured that we’ll full this merger.”
Shares had been up three.eight p.c to $38.87 in after-hours buying and selling.
AT&T reported a internet addition of 329,000 cellphone subscribers who pay a month-to-month invoice within the quarter, helped by decrease buyer attrition and a “purchase one, get one free” promotion for the iPhone eight. The No. 2 U.S. wi-fi service misplaced 67,000 subscribers a yr earlier.
AT&T, which owns satellite tv for pc tv service DirecTV, stated it misplaced 207,000 conventional U.S. video subscribers within the quarter as extra shoppers drop their pay-TV packages. It added 368,000 to its cheaper DirecTV Now streaming service.
Offering video leisure on telephones has taken on larger significance as AT&T slugs it out with business chief Verizon Communications Inc (VZ.N) and smaller rivals Dash Corp (S.N) and T-Cellular US Inc (TMUS.O) for purchasers in a saturated wi-fi market.
AT&T’s deliberate acquisition of Time Warner, initially introduced in October 2016, displays an effort to show itself right into a media powerhouse that may bundle cell service with video.
Web earnings attributable to AT&T within the fourth quarter was $19.zero billion, or $three.08 per share, within the fourth quarter ended Dec. 31, up from $2.four billion, or 39 cents a share, within the year-earlier interval.
Excluding objects, the corporate reported earnings of 78 cents per share, which included a 13-cent impression from tax cuts signed into legislation by U.S. President Donald Trump late final yr. Analysts on common had been anticipating earnings of 65 cents per share, in response to Thomson P3P I/B/E/S.
Income was $41.7 billion, in contrast with $41.eight billion within the year-earlier interval. Analysts had anticipated $41.2 billion.
For 2018, AT&T stated together with impacts from tax cuts and a brand new accounting commonplace, it expects earnings per share within the $three.50 vary, free money stream of about $21 billion and capital expenditures of $25 billion.