US telecommunications company AT&T filed its financial report for the first quarter of 2016 with video revenues in Latin America for USD 1.1 billion, driven by the purchase of Satellite TV operator DirecTV.
The company reported 12.4 million video connections in the region, including the 5.3 million of Sky Brasil. During the first quarter of 2016, operations in that division had a net loss of 73,000 video connections.
“In Latin America, our video operations continue to show solid revenue growth on a local currency basis, but foreign exchange rates significantly impacted our published results. Revenues are being hampered by a challenging economy”, said SEVP and CFO of AT&T, John Stephens, during the earnings presentation.
DirecTV Panamericana provides DTH services in Argentina, Chile, Colombia, Ecuador, Peru, Puerto Rico, Uruguay, Venezuela and the Caribbean. In addition, AT&T owns 93% of Sky Brazil and 41% of Sky Mexico (controlled by Televisa Group).
“Subscriber pressures in Brazil impacted net adds, but foreign exchange also impacted lower company expenses. We did see sequential profitability trends in the quarter, and continue to expect self-sustaining cash flow for the year”, said Stephens.
AT&T does not rule out the possibility of selling some of its operations in Latin America if the conditions to do so are given, said the company’s CEO, Randall Stephenson, in December 2015. It is speculated that Spanish telecommunications company Telefonica could be interested in acquiring certain assets.