AT&T broadband sub losses, narrowing margins may highlight Q3 report, Wells Fargo says October 4, 2016
In a new research note, Wells Fargo analyst Jennifer Fritzsche said she expects AT&T will lose a net 15,000 broadband subscribers. Specifically, Fritzsche does not anticipates 160,000 IP broadband additions will be offset by 175,000 DSL losses,
The loss would sharply contrast with the 74,000 net broadband additions that AT&T recorded in the second quarter. Following that most recent quarter, AT&T’s total wireless broadband subscriber sits right around 14.2 million.
Losing broadband subs would be somewhat of a setback for AT&T, which was the only telco out of the top four that didn’t give up broadband subs in the second quarter. CenturyLink lost 65,000, Verizon lost 13,000 FiOS internet subscribers, and Windstream lost 16,000.
In addition to expected broadband subscriber losses, Wells Fargo also predicts AT&T’s entertainment group will see its margins shrink during the third quarter. The firm adjusted its estimates from 24.5 percent to 23.5 percent, due in part to the cost impact of NFL Sunday Ticket.