AT&T eats a $15.5 billion impairment cost as DirecTV debacle continues

A man with an umbrella walking past a building with an AT&T logo.

Enlarge / A person walks with an umbrella outdoors of AT&T company headquarters on March 13, 2020, in Dallas, Texas. (credit score: Getty Pictures | Ronald Martinez)

AT&T misplaced 617,000 clients from DirecTV and its different TV companies within the ultimate quarter of 2020, capping a yr wherein it misplaced almost three million clients within the class, AT&T reported right this moment.

AT&T right this moment additionally knowledgeable the Securities and Change Fee that it has taken “noncash impairment fees of $15.5 billion” associated to its ongoing DirecTV debacle. AT&T mentioned the $15.5 billion fees replicate “adjustments in our administration technique and our analysis of the home video enterprise… together with our choice to function our video enterprise individually from our broadband and legacy telephony operations.” This operational choice “required us to establish a separate Video reporting unit and to evaluate each the recoverability of its long-lived belongings and any assigned goodwill for impairment,” AT&T mentioned.

AT&T mentioned it additionally logged “fees of roughly $780 million from the impairment of manufacturing and different content material stock at WarnerMedia, with $520 million ensuing from the continued shutdown of theaters in the course of the pandemic and the hybrid distribution mannequin for our 2021 movie slate.”

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