AT&T reported a 2% year-on-year fall in revenues for the third quarter to 44.6 billion US dollars, on a constant currency basis. Declines in revenues from legacy wireline services, WarnerMedia and domestic video, were partially offset by growth in strategic and managed business services, domestic wireless services and IP broadband. AT&T said that HBO revenues were up 10.6% on higher content sales and stable subscription revenues.
AT&T forecast that its group revenues will grow by 1% to 2% per year from 2020 to 2022. It predicted this growth will be driven by "strength in Mobility, increased fiber penetration and WarnerMedia." It expects wireless service revenues to grow by more than 2% per year, as well as enjoying significant incremental growth from HBO Max (its new video-on-demand service) and targeted advertising from Xandr.
With reference to HBO Max, Randall Stephenson, CEO, said: "This is not Netflix, this is not Disney, this is HBO Max, and it's going to have a very unique position in the marketplace.... This is going to be a meaningful business to us over the next four or five years. And we're talking a 50 million subscriber business and I'm really, really enthusiastic about this." He went on to clarify that AT&T forecasts that HBO Max will be able to attract 50 million U.S. subscribers within five years. source: AT&T collateral
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