=AT&T (T) reported earnings on Tue 25 July 17 (a/h)

• AT&T Q2 Adjusted Profit Beats, Pay-TV Video Subscribers Fall

AT&T (T) Tuesday reported second-quarter adjusted profit that topped views and in-line revenue as pay-TV subscriber losses were higher than expected.

AT&T said adjusted second-quarter earnings were 79 cents a share, up from 72 cents a year ago, with revenue falling 1.7% to $39.8 billion. Analysts expected AT&T to report profit of 74 cents on sales of $39.80 billion for the period ended June 30.

AT&T said its DirecTV satellite TV business lost 156,000 subscribers vs. a 342,000 gain in the year-earlier period. AT&T's landline U-verse TV service lost 195,000 subscribers, less than the 391,000 shed a year ago. AT&T's new DirecTV Now internet service added 152,000 subscribers. AT&T has been packaging the online video service with wireless products.

AT&T said wireless revenue was flat at $9.73 billion. Legacy voice and data service revenue fell nearly 16% to $3.5 billion.

AT&T said it lost 89,000 postpaid phone subscribers, narrowing its loss from 180,000 in the year-earlier-period. Analysts had estimated that AT&T would lose 256,000 postpaid phone subscribers.

The telecom conglomerate's wireless growth has slowed amid intensified competition from T-Mobile US (TMUS), Sprint (S) and Verizon Commuications (VZ). AT&T is seeking regulatory approval to buy media giant Time Warner (TWX).