Jan 31, 2018

AT&T beats Wall Street expectations despite Time Warner drama

Kim Hart, author of Cities

Roberto Machado Noa/LightRocket via Getty Images

AT&T beat investors' expectations with strong wireless subscriber growth and its lowest-ever fourth-quarter subscriber cancellation rate.

What stands out: Despite the set-back of the Justice Department challenging its acquisition of Time Warner Inc., AT&T had some big wins in Washington in 2016, with the new tax law giving a major boost to its bottom line.

The Republican tax law lowered its tax rate from nearly 33% to 21%. AT&T said last month it would give $1,000 bonuses to more than 200,000 employees due to the bill, and would spend $1 billion in additional investment in the U.S.

On Time Warner: AT&T CEO Randall Stephenson said, "we look forward to presenting our case in court and closing the deal."

Legacy losses: AT&T reported $41.7 billion in revenue for the quarter, compared to $41.8 billion for the year-ago quarter. The slight drop was due to declines in legacy services and domestic video. AT&T said those losses were mostly offset by growth in wireless equipment and international business.

Thanks in part to the tax cuts, AT&T reported $19 billion in reported fourth-quarter net income, or $3.08 per diluted share. That's compared to $2.4 billion, or $0.39 per diluted share, in the year-ago quarter.

Go deeper

Updated 33 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

Global: Total confirmed cases as of 8:30 p.m. ET: 5,803,416 — Total deaths: 359,791 — Total recoveries — 2,413,576 — Map.
U.S.: Total confirmed cases as of 8:30 p.m. ET: 1,720,613 — Total deaths: 101,573 — Total recoveries: 399,991 — Total tested: 15,646,041 — Map.
Public health: The mystery of coronavirus superspreaders.
Congress: Pelosi slams McConnell on stimulus delay — Sen. Tim Kaine and wife test positive for coronavirus antibodies.
World: Twitter slapped a fact-check label on a pair of months-old tweets from a Chinese government spokesperson that falsely suggested that the coronavirus originated in the U.S.
2020: The RNC has issued their proposed safety guidelines for its planned convention in Charlotte, North Carolina.
Axios on HBO: Science fiction writers tell us how they see the coronavirus pandemic.
🏃‍♀️Sports: Boston Marathon canceled after initial postponement, asks runners to go virtual.
What should I do? When you can be around others after contracting the coronavirus — Traveling, asthma, dishes, disinfectants and being contagious — Masks, lending books and self-isolating — Exercise, laundry, what counts as soap — Pets, moving and personal health — Answers about the virus from Axios experts — What to know about social distancing — How to minimize your risk.
Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.

2 hours ago - World

The eye of the COVID-19 storm shifts to Latin America

Data: The Center for Systems Science and Engineering at Johns Hopkins; Chart: Naema Ahmed/Axios

The epicenter of the COVID-19 pandemic has moved from China to Europe to the United States and now to Latin America.

Why it matters: Up until now, the pandemic has struck hardest in relatively affluent countries. But it's now spreading fastest in countries where it will be even harder to track, treat and contain.

Go deeper (2 min. read)

4 hours ago - Politics & Policy

Minnesota activates National Guard amid fallout from George Floyd death

A portrait of George Floyd hangs on a street light pole in Minneapolis. Photo: Stephen Maturen/Getty Images

George Floyd, 46, moved to Minnesota to improve his life and become his "best self," but instead, he is dead because of Minneapolis police.

The latest: Minnesota Gov. Tim Walz declared a state of emergency and activated the state's National Guard in response to violent clashes over the past two days between police and protesters in the Twin Cities.

Go deeper (2 min. read)