WarnerMedia Lifts AT&T Results

WarnerMedia’s fourth quarter revenues were up by 5.9 percent to $9.2 billion, largely driven by gains at Warner Bros.

Warner Bros. reported revenues of $4.5 billion, a 10.4-percent gain, driven by a 29.3-percent boost in theatrical and a 3.9-percent increase in television. Television product revenues increased primarily due to higher licensing of series and initial telecast revenues. Operating income increased 57.2 percent to $811 million.

Revenues at HBO were fairly stable at $1.7 billion, with a 3-percent dip in subscription revenues partially offset by an increase of 16.7 percent in content and other revenues. The dispute with DISH was cited as a key reason for the fall in subscription revenues, but the company said it also benefited from higher domestic rates and international growth. Operating income soared to $622 million.

Overall revenues at Turner were $3.2 billion, down slightly from the year-ago period, largely as a result of a 6.3-percent drop in ad revenues, while subscription revenues were up 3.7 percent. International ad revenues were impacted by unfavorable exchange rates. Operating income totaled $1.3 billion, up 20.7 percent.

Parent company AT&T said that total revenues at the company were up 15.2 percent to $48 billion, largely as a result of its Time Warner acquisition. The company’s largest revenue contributor remains its wireless services business in the U.S., with revenues of $18.8 billion.

The entertainment group, which delivers video, high-speed internet and communications services in the U.S., saw revenues fall by 4.8 percent to $12 billion, reflecting declines in TV subscribers and legacy services. Total video subscribers fell by 658,000 in the quarter (including 267,000 lost at the vMVPD DIRECTV NOW and linear video subs falling by 391,000).

Latin American revenues—including wireless services in Mexico and the Vrio pay-TV service—were down by 16.8 percent to $1.8 billion, largely due to foreign exchange pressures from revenues in multiple currencies. Vrio ended the quarter with 13.8 million subs.