The telecommunications group AT&T announced on Monday a net profit of $11,509 billion dollars in the first nine months of the year, 20.7% less than in the same period in 2018, when the main mobile business won subscribers but more than one million customers left its DirecTV unit.
All this when the management of AT&T has agreed with a reference investor that pressured the telecommunications giant to modernize its strategy.
The company’s agreement with Elliott Management Corp., an aggressive investment fund headed by billionaire Paul Singer, includes a commitment to regular share repurchases and a plan to appoint two new directors to its board, led by President and CEO Randall Stephenson.
The company pledged to conduct a portfolio review, avoid major acquisitions and repay the debt from its 2018 acquisition of Time Warner. AT&T also agreed to separate the roles of president and CEO when Stephenson retires.
The U.S. company acquired Time Warner last year in a more than $85 billion transaction.
Regarding the income statement, the U.S. company earned $1.57 per share in these first nine months, compared to $2.19 in the same period a year ago, as reported in a statement.
The turnover of the second group of U.S. mobile telephony up to September amounted to $ 134,372 billion dollars, a year-on-year increase of 3.3% over the 122,763 billion invoiced in 2018.
In the most recent quarter, followed by Wall Street analysts, net profit attributable to AT&T was $3.7 billion, 21.6% less than last year.
In the last quarter, earnings per share were $0.50, compared to $0.65 between January and September last year.
Likewise, in the last three quarters, AT&T had revenues of 44,588 million dollars, 2.5% less than the 45,739 million of the same period in 2018.
In the third quarter, the entertainment division of the Dallas-based company lost 1.4 million pay-TV customers. Losses included 1.2 million satellite and fiber optic television customers and a 195,000-subscriber decline in AT&T TV Now, the package of online channels once called DirecTV Now.
AT&T’s wireless wing offered more stable performance, with a gain of 101,000 subscribers on postpaid telephone subscribers, a valuable category of customers who pay for service at the end of the billing cycle.
AT&T shares rose 2.2% in electronic transactions prior to the opening of Wall Street.