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AT&T logo in New York. Photo: Roberto Machado Noa/LightRocket via Getty Images

AT&T reported positive earnings results for their third quarter Wednesday, beating on revenue and falling slightly short on profits. The company credits its revenue growth to WarnerMedia (its media division that was formerly called Time Warner) and its wireless business.

Why it matters: The results show that WarnerMedia, which grew its revenue by 6.5% year-over-year, may become an opportunity for growth in the short-term for AT&T. The telecom company acquired the media company in June with the intention of building a strong subscription video on-demand business and advertising business long-term.

The details: This was the first earnings report for AT&T after owning WarnerMedia for a full quarter. Earnings highlights include Turner and HBO year-over-year subscription revenue growth and strong Warner Bros. television licensing revenue growth.

  • AT&T's advertising business, Xandr, created in part through the Time Warner acquisition, also performed well. Advertising revenues were up 34%.

Yes, but: Dramatic changes to the media business haven't yet occurred, so earnings should be reflective of positive momentum of Time Warner, prior to the acquisition.

  • Last week the company shut down "Super Deluxe," its comedy production arm, but it has yet to make other sweeping changes.
  • However, executives have indicated that capital reallocations towards its new subscription video product may impact some other business, most likely some of the Turner brand cable channels.

The bigger picture: AT&T's positive earnings outlook from its media acquisition stands in stark contrast to its rival, Verizon's. In its earnings report Tuesday, Verizon suggested that the outlook for Oath, the digital media business it created last year by combining companies like AOL and Yahoo, was not strong and appears flat in the short-term.

Go deeper

Prosecutor: Fatal police shooting of Andrew Brown Jr. was "justified"

Khalil Ferebee (C), the son of Andrew Brown Jr., and attorneys Bakari Sellers (L) and Harry Daniel (R) at a May 11 news conference in Elizabeth City, North Carolina. Photo: Sean Rayford/Getty Images

A North Carolina prosecutor said Tuesday that the death of Andrew Brown Jr., a Black man fatally shot by sheriff's deputies last month, was "tragic" but "justified," due to the immediate threat officers believed Brown posed.

Why it matters: The FBI has opened a civil rights investigation into Brown's death. Police in Elizabeth City shot him five times, including in the back of his head, according to an independent autopsy report released by family attorneys last month.

McCarthy comes out against bipartisan deal on Jan. 6 commission

Photo: Win McNamee/Getty Images

House Minority Leader Kevin McCarthy (R-Calif.) will oppose a bipartisan deal announced last week that would form a 9/11-style commission to investigate the Jan. 6 Capitol riot, his office announced Tuesday.

Why it matters: McCarthy's opposition to the deal, which was negotiated by the top Republican and Democrat on the House Homeland Security Committee, underscores the internal divisions that continue to plague the GOP in the wake of Jan. 6.

3 hours ago - World

Beijing's antitrust push poses a problem for Western regulators

Illustration: Sarah Grillo/Axios

The Chinese government's anti-monopoly machinery presents a major challenge to U.S. and European regulators, a new book argues.

Why it matters: China's huge markets are attracting investment from multinational corporations and shaping the behavior of its own globe-trotting companies — giving international heft to the country's idiosyncratic antitrust enforcement and putting it on a collision course with Western-style regulation.

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