AT&T reports mixed Q2 results

The company said revenue was down year-over-year primarily due to declines in domestic video and legacy wireline services.

AT&T released second quarter financial results on Tuesday, marking the company's first financial report since closing its still-contested $85 billion acquisition of Time Warner.

The company reported adjusted earnings of 91 cents per share on revenue of $39 billion. A year ago, AT&T reported earnings of 79 cents per share on revenue of $39.8 billion. Wall Street was expecting earnings of 85 cents per share on revenue of $39.4 billion.

Revenue was down year-over-year primarily due to declines in domestic video and legacy wireline services. However, AT&T said the declines were offset by the $1.1 billion it added from Time Warner's growth in wireless, strategic business services and advertising.

"Time Warner joins us coming off an impressive second-quarter," said AT&T chairman and CEO Randall Stephenson. "Turner turned in solid subscription and advertising revenue growth, Warner Bros. is in high gear with a record number of series in production, and HBO delivered strong subscriber revenue growth."

AT&T also highlighted its 3.8 million wireless net adds, which included 3.1 million from the US driven by prepaid and postpaid connected devices. The wireless carrier ended the quarter with 46,000 postpaid phone net adds and a churn rate of .82 percent.

The company also touted 76,000 IP broadband net adds for the quarter. It now has more than 9 million AT&T Fiber customer locations. All told, AT&T says it has 170 million "direct-to-customer" relationships.

As for guidance, AT&T is raising its full year earnings estimates to the high end of $3.50 range, versus the $3.40 analysts had estimated, and expects capital investment of approximately $25 billion.