Published: Fri, October 13, 2017
Business | By Max Garcia

AT&T counts the cost of natural disasters in the third quarter

AT&T counts the cost of natural disasters in the third quarter

AT&T, which is getting set to report third-quarter earnings on October 24, warned Wall Street its results took a significant hit from hurricanes and the natural disaster in Mexico. "Damage to our network and other property, costs to restore services, and revenue declines from waived charges will decrease our reported third-quarter 2017 consolidated revenues almost $90 million and our reported pre-tax earnings about $210 million, or $0.02 per diluted share".

AT&T also said it lost about 90,000 USA video subscribers in the quarter due to intense competition in traditional pay TV markets as well as the impact of the recent hurricanes.

AT&T has filed an financial update for its third quarter with the SEC, saying it expects a decline in video subscribers and subsequent effect on Entertainment Group revenues and margins.

AT&T says it expects further reductions spilling into Q4.

Even though the pre-released linear video subscriber losses were higher than expected and storm impact was a short-term negative, AT&T is clearly "not the only one being impacted by these trends in Q3", Wells Fargo Senior Analyst Jennifer Fritzsche wrote in an investor note. The company estimates capital expenditures in the $22 billion range, and free cash flow at the low end of the $18 billion range.

Shares in AT&T Inc (NYSE:T) were lower in pre-market trading after the telecoms giant issued a profit warning on Wednesday evening. The company said that it saw a loss of subscribers due to competitors' pricing.

AT&T will release its third quarter earnings on Tuesday, Oct. 24.

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