AT&T (NYSE:T) beat analysts' estimates for fourth-quarter profit and revenue as solid growth in its streaming platform HBO Max more than made up for a drop in its wireless business.
The company's shares rose 2% in pre-market trading as revenue at Warner Media, which houses premium TV channel HBO and streaming service HBO Max, rose 15.4% to $9.9 billion U.S. in the quarter.
HBO and HBO Max together added 4.4 million subscribers during the quarter, drawing viewers with movies such as "Dune" and the newest season of TV show "Succession."
In its wireless business, AT&T added fewer-than-expected subscribers who pay a monthly bill. The company said it signed up 884,000 net new phone subscribers who pay a monthly bill during the fourth quarter, falling short of FactSet estimates of 906,500 new subscribers.
AT&T's total revenue came in at $41 billion U.S. in the quarter ended December 31, beating analysts' estimates of $40.44 billion U.S., according to Refinitiv data.
AT&T earned $0.78 U.S. per share in the quarter, above analysts' average estimate of $0.75 U.S. per share.
Looking ahead, the company said it expects annual earnings to be between $3.10 U.S. and $3.15 U.S. per share in 2022, falling short of analysts' average estimate of $3.21 U.S.
