Q4 WarnerMedia Revenues Slip Amid HBO Max Investments

WarnerMedia’s revenues in Q4 2019 fell by 3.3 percent to $8.9 billion as a result of foregone content licensing revenues in preparation for the launch of HBO Max.

Turner’s revenues rose to $3.3 billion, a 1.6-percent gain, with subs revenues up 3.1 percent and content licensing and other revenues rising 7.3 percent, while ad revenues fell by 2 percent. HBO’s were up 1.9 percent to $1.7 billion, boosted by a 5.4-percent gain in content and other revenues and a 1.2-percent lift in subscription revenues, driven by digital and international growth as the number of domestic linear subscribers fell. Warner Bros.’s revenues were down 8 percent to $4.1 billion as a result of lower theatrical revenues and foregone content licensing revenues, which were partially offset by higher television production revenues. WarnerMedia posted an operating income of $2.4 billion, down 7.7 percent on Q4 2018, citing increased costs related to the launch of HBO Max.

AT&T’s Entertainment segment, encompassing its pay-TV businesses in the U.S., reported revenues of $11.2 billion, a 6.1-percent decline. The segment lost 945,000 premium TV subscribers and AT&T Now shed 219,000.

Total AT&T revenues for Q4 2019 were $46.8 billion, with net income falling to $2.4 billion.

“We delivered what we promised in 2019 and we begin this year with strong momentum in wireless, with HBO Max set to launch in May and our share retirement plan well underway,” said Randall Stephenson, AT&T chairman and CEO. “Our 2020 outlook positions us to deliver meaningful progress on our three-year financial and capital allocation plans as we continue to invest in growth opportunities and create value for our owners, as we did last year.”