AT&T on Friday reported a $1 billion pre-tax profit warning for the fourth quarter of 2016.
The loss is related to changes in assumptions about its pension and post-retirement plan obligations. The change will be recorded as an adjustment in its fourth-quarter results, which are due to be released on Wednesday.
Despite the pre-tax profit warning, AT&T's shares rose 1.10% on Friday. This is because AT&T also revealed that it had added 200,000 subscribers to its DirecTV Now service.
DirecTV Now is a mobile TV service that can be streamed to a variety of devices. It was launched on November 30, 2016, and so the subscriber growth represents just a month of additions. (See AT&T Debuts DirecTV Now on New Video Platform.)
The uptick will be welcome news to AT&T, which lost 268,000 wireless subscribers on a monthly contract in the third quarter. (See AT&T Bleeding Video, Data, Mobile Subs and T-Mobile: AT&T & TW Means Ma Bell Not Focused on Mobile.)
— Dan Jones, Mobile Editor, Light Reading