AT&T Gains on Positive Forecast for HBO Max and Subscriber Base By Investing.com

By Dhirendra Tripathi

Investing.com – AT&T (NYSE:T) shares rose 3.7% Friday after the company projected a bigger than expected subscriber base for its HBO Max and HBO streaming services.

The media and telecom company said on Friday it expects the global subscriber base to come between 120 million and 150 million for HBO Max and HBO by the end of 2025. The higher forecast comes as more people turn to cheaper at-home streaming services for entertainment.

In October 2019, AT&T projected 75 million to 90 million subscribers for the same period.

The company expects to launch an advertising-supported version of HBO Max in the U.S. in June. HBO Max will expand internationally to 60 markets in the ongoing year, the company said.

AT&T expects its HBO business unit revenues to more than double over five years. For the full year, the company continues to expect consolidated revenue growth in the 1% range.

In the longer term, AT&T expects an increased focus on growth areas enabled by separating the U.S. video business. The company is moving this operation to a newly formed entity jointly owned with TPG Capital. This transaction was announced recently.