This week, AT&T chief financial officer John Stephens gave shareholders an update about financial goals going into 2020. A large part of that plan centers on moving customers away from discounted video plans to more expensive AT&T TV or DIRECTV plans. If they don’t move, AT&T seems to be trying to force them to cancel.
Stephens said that the third quarter is expected to be AT&T’s peak video subscriber loss quarter. AT&T has about 400,000 customers left on highly discounted video plans, according to AT&T. The company is working toward moving those customers away from discounted plans and migrate customers to more profitable services.
We first reported on this plan in July, when AT&T first began talking about their massive subscriber losses and the strategy of focusing on more profitable customers.
Stephens elaborated on that plan for shareholders this week, sharing that the 3-year plan has AT&T expecting to grow earnings before interest by 200 points by 2020. That revenue growth will come from wireless, WarnerMedia, and initiatives in Mexico, according to Stephens.
In the company’s Entertainment Group specifically, Stephens says the group is on track to meet the goal of stable earnings before interest, tax, depreciation, and amortization (EBITDA) with EBITDA up 2.3% in the third quarter of this year. Stephens attributes that improvement to the focus on profitable customers.