HBO and its HBO Max streaming service ended March with 76.8 million global subscribers, up 3.0 million from the 73.8 million subscribers at the end of 2021.
Telecom giant AT&T reported consumer gains that differed from Netflix’s subscriber losses in the first quarter, prompting Wall Street analysts to reassess their stance on the stock and also topple competitors in their states. Its first earnings update since WarnerMedia’s entertainment division left earlier this month to merge with Discovery.
HBO and HBO Max domestic subscribers reached 48.6 million as of March 31, 1.8 million up from 46.8 million at the end of 2021. HBO and HBO Max added 12.8 million subscribers in the 12 months to March, including 4.4 million internal customers, AT&T. reported. The telecom company also announced average revenue per customer (ARPU) for its domestic subscribers at $11.24, $11.15 in Q4 2021 and $11.72 in Q1 2021.
HBO Max and HBO global subscribers include both local and international customers, excluding free trial, core and Cinemax subscribers, AT&T said. Meanwhile, “Internal HBO Max and HBO subscribers consist of US accounts that have access to HBO Max (including wholesale subscribers and subscribers who access bundled services for affiliates who may not be connected) and HBO, and exclude free trials. and Cinemax subscribers. ”
Following the closing of the Discovery-WarnerMedia mega-merger after the end of the first quarter, AT&T announced that revenue from WarnerMedia, including Warner Bros., Turner Networks and HBO, increased 2.5% in the first quarter, and revenue from Signature increased to $8.7 billion and “Content & Other” revenue increased. Advertising revenue, however, fell 3% to $1.7 billion amid low linear TV viewership and a “difficult” comparison with strong political ad spending a year earlier.
WarnerMedia’s operations fell 32.7% to $1.3 billion, adding HBO Max launches in other international markets, CNN+ launches and “total programming, marketing and sales costs.”
Excluding WarnerMedia and the Xandr ad technology business, which the company agreed to sell to Microsoft late last year, AT&T’s standalone revenue rose 2.5% to $29.7 billion in both quarters, while revenue operations were unchanged at $5 billion and $8 billion.
Cowen analyst Gregory Williams predicted further consumer growth at HBO and HBO Max. The analyst predicted that HBO Max would increase its domestic subscribers by 3.1 million, in addition to an additional 4.8 million global users “running last quarter in Latin America and Europe.” Warner Studio’s latest blockbuster bat Man He contributed to the results recently.
The analyst also predicted WarnerMedia’s first quarter trends: revenue of $8.95 billion, up 0.4% from a year ago, interest, tax, depreciation and amortization (EBITDA) income of $1, 56 billion, up 29% less. “We expect a steady increase in revenue directly from customers and content, while we expect mainnet revenue to decline by 2%,” he said, citing “almost flat” advertising, higher programming costs and higher costs.
Some on Wall Street have become more prosperous than the telecommunications-oriented AT&T. JP Morgan analyst Philip Kuzick raised the stock from “neutral” to “overweight” on April 11 at a target price of $22. A more communications-focused company, AT&T now looks more with Verizon Communications than years ago, after the satellite video business was downsized and the capital liabilities of the Warner/HBO media business were crushed.
AT&T shareholders receive Warner Bros. Discovery owns 71% of the shares, with the remainder held by Discovery investors.
In AT&T’s core wireless business, the company touted “momentum and growth, with customers choosing America’s most reliable 5G network at record levels.” It announced its largest postpaid network in the first quarter in more than a decade, with 691,000.
In the broadband network, AT&T Fiber highlighted “strong demand, competitive pricing, steady investment and planned expansion. AT&T said this289,000 fiber network subscribers declined in the first quarter.
“Our momentum in growing customer relationships is high,” said AT&T CEO John Stenky. “We had the best first quarter in terms of postpaid network additions for over a decade, and our fiber broadband network additions remain consistently strong.
Referring to the company’s telecommunications focus on selling assets, he added, “AT&T has entered a new era, approaching this opportunistic moment from a position of flexibility and strength, thanks to our evolving networks, enhanced customer experience, 5G and a growing fiber customer base. And a much stronger balance. And we continue to make good progress on our journey to becoming America’s best broadband provider.”
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
