Ever since AT&T acquired DirecTV, the company’s revenue has been rising, making new records at the Wall Street. However, there were some reports that AT&T’s revenue was below the expectations of Wall Street in the first quarter of 2015. Interestingly, the revenue rose by approximately 22.3% by the last quarter. In 4Q15, the total revenue that the company earned was $42.1 billion.
It is clear that DirecTV acquisition is paying off for AT&T now. They also started to offer many bundled DirecTV packages, where customers can choose from a variety of services such as data, satellite television, and telephone. Many customers are attracted to the combo deals as it helps them convert multiple bills into a single one and thereby avoid the headaches. Customers who choose the combo deals are provided with attractive discounts for a period ranging from six months to one year on two-year contracts. This too has worked out in favor of AT&T’s marketing strategy.
The experts observed that there has not been any decline in the demand for AT&T shares after it took over DirecTV in May 2014. In 3Q15, the revenue of the company rose by 18.6% year-over-year. In 4Q15, it was 22.3%. The rising trend in the revenue is closely associated with DirecTV acquisition.
Meanwhile, the reports indicate that the revenue from the major businesses of the company fell during the same period. In 4Q15, its revenue from the business solutions segment fell by about 2.7%. The business solutions segment is determined by wireline and wireless components. While the wireline revenue fell by 3.8%, the wireless revenue fell by 1.9%.
AT&T announced in December 2015 about its future plans to expand the DirecTV brand under the name AT&T Entertainment. As part of the plan, the company has adopted a new logo. Through AT&T Entertainment, the company plans to deliver unique and innovative entertainment services. It is also planning to introduce multiple-platform advertising opportunities across PC, TV, and wireless devices.
At the moment, AT&T is the most popular provider of broadband, satellite television, and voice and wireless communication. It offers unmatched services at the best interest of the customers. What makes it increasingly compelling is its offering of On-Demand and personalized content.
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