This news analysis piece examines COVID-19 impacts on AT&T’s 2Q20 results. Parts of AT&T’s business are struggling in the pandemic, while others are keeping up. WarnerMedia was hard hit, but subscription businesses fared better.
- Consolidated revenue was down 8.9% year on year and included an estimated impact of $2.8 billion of lost or deferred revenue as a result of COVID-19, with over half of the impact due to the WarnerMedia segment.
- Customer interest in lower-cost solutions from the prepaid and reseller (MVNO) segments improved for AT&T in 2Q20.
- AT&T did not see an uptick in fixed broadband overall, but the company saw growth in fiber subscriptions and an uptick in those choosing gigabit speeds.
Features and Benefits
- Identify the impacts of COVID-19 on AT&T’s 2Q19 results.
- Evaluate the business measures AT&T took in response to the pandemic.
- Learn what AT&T could do to boost its business during COVID-19 and beyond.
Key questions answered
- What were the impacts of COVID-19 on AT&T’s key metrics, such as consolidated revenue, EBITDA, and subscriptions?
- What business measures did AT&T take when faced with the pandemic?
- What can AT&T do to boost its business during COVID-19 and beyond?
Table of contents
AT&T was hardest hit by COVID-19 in its WarnerMedia business, while its subscription businesses were more resilient
AT&T worked with the FCC on a pandemic response on top of its own measures
AT&T should look to reconstruct service plans to remedy net broadband declines and prepare for 5G iPhone equipment upgrade