AT&T Entertainment Group Subscriber Adds
The subscriber additions (adds) refers to the net additions during a given period. It is used to measure whether the number of new customers gained exceeds the customers lost. It is computed as follows:
|Net subscriber adds = New subscribers gained (gross adds) in a period – subscribers lost over the same period (churn)|
Importance of tracking AT&T Entertainment Group Subscriber Add
AT&T’s Entertainment group is its second largest business division, after Mobility segment. So, its Entertainment Group Subscriber adds would tend to have a direct impact on the segment’s financials. Subscriber adds, in itself, is one of the primary metrics within the telecom industry as it highlights how satisfied or dissatisfied a particular telecom firm’s subscribers are.
AT&T subscriber additions as a metric
A positive net addition would be ideal. Furthermore, an increase in subscriber adds from one period to another would also be a good indicator of growth for the company.
Analysis of performance of AT&T based on subscriber additions
The subscriber adds to the connected devices segment of AT&T stood at 3.9 million in Q3 FY 2019. This was a 12.75% increase from the third quarter of the previous fiscal year. The highest net adds for connected devices in over 2 years, was of 3.959 million during Q2 FY 2019. The lowest adds over the same period, was of 1.268 million in the last quarter of FY 2016.
The postpaid subscriber adds has been on a downtrend for the first three quarters of the current fiscal year. After a net adds of -232,000 during Q3 FY 2018, the company momentarily recovered with 13,000 additions during Q4 FY 2018, immediately preceding the above downtrend. Every first quarter of the past couple of years has had a massive decline in postpaid subscriber adds. For instance, in Q1 FY 2017, the net adds fell to -194,000 from 499,000 in Q4 FY 2016 and in Q1 FY 2018, the net adds plunged to 49,000 from 558,000 in Q4 FY 2017.
Apart from connected devices, the prepaid subscribed adds was the only positive segment for AT&T in Q3 FY 2019. In Q2 FY 2019, there was a jump of 255% from Q1. Q4 FY 2018 and Q1 FY 2019, showcased the worst net adds in the prepaid segment since Q1 FY 2017. In Q4 FY 2018, only 26,000 prepaid subscriber adds were reported.
The quarterly reseller subscriber adds has been negative since the last quarter of FY 2016. The best quarter appears to be Q1 FY 2019, in which the subscriber adds were -208,000, while the worst one took place in Q4 FY 2016 with -673,000 net adds to the reseller segment.
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