AT&T (T) & Fox Networks Conclude Multi-Year Deal Renewal
AT&T Inc.T recently announced that it has completed the renewal of a multi-year deal with Fox Networks Group for distribution of most of the latter's programming across AT&T's video platforms.
The deal involves retransmission agreement for Fox TV stations in 17 cities as well as 22 Fox-owned regional sports networks. Notably, it also covers channels like FS1, FS2, FX, FXX, FXM, Nat Geo Wild along with the Fox Soccer Plus pay-per-view service among others. As a matter of fact, the multi-year deal will ensure the availability of Fox Networks' programming across AT&T's DirecTV, DIRECTNOW and U-Verse video platforms. This will enable the company to offer more choice as well as greater value to customers.
Existing Business Scenario
AT&T is ramping up its FirstNet program and revamping its lineup of video products, pricing and promotion initiatives. Also, the company remains well poised to benefit from the 5G era, introducing 5G mobile in parts of 12 cities by the year end. With assets like HBO, CNN and TNT, AT&T's acquisition of Time Warner has created new kinds of online videos and opened up avenues for targeted advertisements to counter its peers.
Moreover, with strength in the Wireless business and incremental contribution from WarnerMedia assets, the company is poised to continue its healthy growth momentum.
However, in the past three months, this Zacks Rank #3 (Hold) stock has lost 8.5% against 0.9% growth recorded by the industry . Also, the company's wireline division is struggling with persistent losses in access lines as a result of competitive pressure from voice-over-Internet protocol service providers and aggressive triple-play (voice, data, video) offerings by the cable companies.
Some better-ranked stocks in the industry are United States Cellular Corporation USM , Gogo Inc. GOGO and Telenav, Inc. TNAV . While United States Cellular sports a Zacks Rank #1 (Strong Buy), Gogo and Telenav carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
United States Cellular surpassed estimates in each of the trailing four quarters, the average positive earnings surprise being 108.11%.
Gogo outpaced estimates thrice in the preceding four quarters, the average earnings surprise being 25.87%.
Telenav surpassed estimates in each of the trailing four quarters, the average positive earnings surprise being 12.03%.
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