AT&T Posts $3.9B Net Loss While Revenue Rises to $34.4B in Q4
AT&T's revenue is up 3.8 percent from the same quarter one year ago while the company also added 854,000 new postpaid wireless customers in the fourth quarter.Following a recent pattern of mixed financial results in the telecommunications marketplace, AT&T posted a net loss of $3.9 billion in the fourth quarter of 2014 though its revenue of $34.4 billion rose 3.8 percent from the same period the previous year. In a Jan. 27 announcement, AT&T also reported that it gained 854,000 new postpaid wireless customers in the quarter and had a slight increase in its wireless postpaid customer churn rate to 1.22 percent, up from 0.99 percent in the third quarter of 2014. The fourth-quarter losses were due to non-cash charges, such as actuarial losses on benefit plans, non-cash write-offs of some network assets, merger and integration-related expenses and other expenses, the company said in its report for the fourth quarter, which ended Dec. 31, 2014. Loss per share was 77 cents, compared with $1.31 earnings per share that were posted for the same period one year ago, according to AT&T. The $3.9 billion fourth-quarter loss was quite a drop from the $6.9 billion in net profits that the company posted a year ago.
"Over the last year, we've made several moves to significantly transform our business for the future," Randall Stephenson, chairman and CEO of AT&T, said in a statement. "Our transactions with DirecTV and Mexican wireless companies Iusacell and Nextel Mexico will make us a very different company. We'll be unique in the industry because we'll be able to offer integrated capabilities across a diversified base of services, customers, geographies and technology platforms. After we close [the] DirecTV [deal], our largest revenue stream will come from business-related accounts, followed by U.S. TV and broadband, U.S. consumer mobility and then international mobility and TV."