AT&T will file a $1 billion pre-tax loss in its Q4 results because of an annual remeasurement of pension and other post-employment benefit plans.
In a regulatory filing issued ahead of the release of its full quarterly earnings report, the operator announced changes to its pension and related plans resulted in an initial loss of around $3 billion. The figure was then offset by gains from a range of factors related to former employees, specifically increases: “related to better than assumed claims experience, slightly higher than expected asset returns, demographic changes and mortality and other assumption changes,” the company said.
AT&T’s regulatory filing also revealed an increase in US subscriber numbers during Q4, broken down as a net gain of 500,000 postpaid and 400,000 prepaid users. Its much discussed DirecTV Now service attracted 200,000 additional paying customers during the period, despite reports of teething problems with the service earlier this week.
During the final three months of 2016, the company continued to move customers away from 2G services, deactivating a total of 700,000 connections, some 50,000 of which were postpaid accounts. While the operator said it “discontinued service on virtually all of our 2G cell sites” by end-December, it still had 2.3 million “2G subscribers and non-voice phone connections” at the close of 2016.
Outside of its home market, AT&T recorded an increase of 1.2 million customers in Mexico during Q4.
AT&T’s full quarterly results are due to be announced on Wednesday 25 January.