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AT&T’s Business Is on Post-COVID-19 Recovery

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On Thursday, AT & T (NYSE: T) posted strong wireless subscriber growth as it saw its first quarter revenue rise, reflecting that its WarnerMedia business is continuing its recovery from effects brought on by the pandemic. Revenue and earnings topped FactSet estimates.

First quarter figures

With $43.9 billion  in revenue, adjusted earnings amounted to 86 cents a share on revenue of, up from last year’s 84 cents in adjusted earnings per share on a revenue of $42.8 billion.

WarnerMedia revenue for the first quarter of 2021 was up 9.8% from last year’s quarter as it amounted to $8.5 billion, due to higher subscription, advertising and content revenue that reflected “the partial recovery from prior-year impacts of COVID-19.” Ad revenue was up 18.5% as it brought $1.75 billion in revenue to the table, with the return of sports, including the NCAA March Madness tournament that gave the network a boost.

The company spent $4.5 billion in cash for programming and produced film/TV content, rising its spending from $4.3 billion in Q1 2020, net of the elimination of transactions between WarnerMedia business units. WarnerMedia’s direct-to-consumer subscription revenue for the quarter was $1.8 billion, exceeding $1.3 billion in the year-ago quarter and up about 35% YoY. Including $998 billion for content, direct costs for WarnerMedia’s DTC business were $1.7 versus $911 million a year earlier.

HBO Max

In Q1, HBO Max had 9.69 million retail subscribers, as they rose 2.8 million from 6.88 million in the previous quarter. Wholesale HBO Max/HBO customers through Comcast Corporation (NASDAQ: CMCSA) and other distributors ticked up 150,000 to 30.94 million. However, legacy HBO subs, including those through hotels, declined 308,000 sequentially.

During the quarter, HBO Max gained about 3 million total subscribers sequentially, continuing on its growth curve as it was powered in part by big-budget films that streamed during the quarter, eliminating fears that the boost created by WW84’s Christmas release wouldn’t be maintained. As of the end of March, HBO Max/HBO combined had 44.2 million domestic customers, which is 2.7 million more than 41.5 million at the end of 2020. Losses on the legacy HBO side were offset by HBO Max’s retail and wholesale growth.

However, HBO Max isn’t turning in the kind of eye-popping subscriber growth like Walt Disney Company’s (NYSE: DIS) Disney Plus that topped 100 million worldwide users. But AT&T noted that domestic HBO Max and HBO revenue per subscriber for Q1 was $11.72 per month, down 2% from $11.97 for HBO in Q1 2020, but still greater compared to Disney’s reported ARPU of $4.03 per month for the year-end 2020 quarter which was down 28%. Meanwhile, Netflix (NASDAQ: NFLX) remains king as it reported Q1 ARPU of $14.25 for its U.S./Canada region with a 9% increase.

A focus on the customer experience

Compared to last year’s quarter, there were no store closures to make things worse, allowing the company to record $19.0 billion in mobility revenue, up 9.4% from a year earlier. Service revenue grew just 0.6% as subscriber gains were largely offset by weak international roaming due to the pandemic. However, AT&T’s equipment revenue rose 45.2% due to a greater mix of higher priced smartphones.

Promotional strategies were tailored well as they resulted in 595,000 postpaid phone net additions for the quarter and a postpaid phone churn rate of 0.76%, lower than last year’s 0.86% . If we take into account all major wireless companies in the U.S., AT&T has been the most focused since the latest iPhone launch on offering promotions to existing customers as opposed to attempting to lure in customers from other carriers. The company was able to trim costs by moving to public-cloud infrastructure from on-premise data centers, and invest in these customer retention efforts that aimed to get existing customers to upgrade their plans.

The company also added 235,000 AT&T fiber customers. AT&T Chief Communications Officer, Jeff McElfresh,announced the company will simplify its various plans to make the buying experience for the customer even smoother.

In June, WarnerMedia will be coming out with a cheaper, ad-supported version of HBO Max, which will exclude the day-and-date Warner Bros. movie releases but  provide the same content as the regular package. Pricing for this tier that will not include advertising in HBO original series hasn’t been announced. This year, WarnerMedia expects to launch HBO Max in 60 markets outside the U.S., including Latin America and the Caribbean in late June and 21 territories in Europe in the second half of the year.

The winning bundle

Chief Executive John Stankey attributed the company’s performances to a successful combination of services like broadband, wireless, and HBO Max, describing it as the winning bundle that drove churn rates down as customers that used all three services have the lowest-churning rates in the company’s ecosystem.

2021 forecasts

For 2021, AT&T continues to expect consolidated revenue growth of about 1% along with stable adjusted earnings per share. The company tweaked its capital-investment projections and now anticipates about $22 billion in gross capital investment, with capital expenditures of around $17 billion, changing its prior projections of $21 billion and $18 respectively. Maintaining wireless momentum, developing HBO Max’s footprint and growing its fiber business are among the biggest strategic priorities.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

BenzingaEditorial

News From the EV World

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EV news keeps on coming. After leading companies like Tesla (NASDAQ:TSLA), General Motors (NYSE:GM) and NIO (NASDAQ:NIO) now Subaru Corporation (OTC: FUJHY) has finally hopped on the EV train by officially releasing a few of teaser images of its first electric car that will be powered by the platform it has been co-developing with fellow Japanese automaker Toyota Motors (NYSE: TM). Renown tonneau cover designer and manufacturer that brought its revolutionary solar fusion TerraVis to the EV table, Worksport Ltd (OTC: WKSP) has announced this morning it entered pre-production and testing phase with TerraVis COR mobile energy storage system with which it’ll tap into a wider consumer market.

Subaru’s first EV

No pricing or specs have been released but the Solterra EV will be coming to the US, Canada, Europe, and Japan in 2022.  Like its automotive peers, the Japanese automaker will use its first electric vehicle as a clean slate to refresh the way it designs the interior of its vehicles. Solterra was created from two Latin words, “Sol” standing for the ‘Sun’ and “Terra” standing for the ‘Earth’ to represent the automaker’s commitment to deliver traditional SUV capabilities in a way that is in harmony with the environment, which does sound refreshingly harmonic for corporate naming conventions. Like other vehicles that will be built on this platform which Toyota calls the e-TNGA and Subaru calls e-Subaru, Subaru’s first EV will benefit from its expertise in creating good all-wheel drive systems and Toyota’s mastery in developing battery technology for its hybrids. Solterra certainly seems more pleasing to the eyes than “BZ4X,” the first SUV Toyota will build on this shared platform that is also due out next year.

Worksport’s TerraVis COR has entered the production prototype phase

After signing deals with Atlis Motor Vehicles and Hercules Electric Vehicles to configure its groundbreaking TerraVis™ system for their upcoming electric pickups and the company’s most recent news about the expansion of its manufacturing capacity and Private Label customer base, Worksport reported it has entered the pre-production and testing phase of its mobile energy storage system, TerraVis COR.

In the coming weeks, the company will soon launch a TerraVis™ website to provide more information on this revolutionary line. TerraVis COR™’s first pre-production prototype is expected to be ready during the early stages of the third quarter. It will be fully operational and is expected to reflect the final product that will be commercially available by the end of the year. However, extensive testing is required to receive certifications for it to become a commercially viable global product. This independent mobile energy system is the ideal integration of user-friendly simplicity with clever and multi-dimensional functionality. It is an extension to its TerraVis line that will allow the company to go beyond pickup trucks and tap into a wider consumer market, appealing to any everyday consumer who needs mobile power- and that is pretty much everyone.

Worksport is also in in the process of getting its uniquely designed sold through several large, automotive-focused, online retailers to expand its footprint nationally.  Simultaneously, discussions are being held with various distribution channels to get the company’s innovative branded products in many brick-and-mortar stores in the coming year as the company is working diligently towards becoming a household brand known for its unique offering of affordable leading-edge technology that enhances everyday lives.

New EV models are coming, the world’s first electric pickup will see the light of the day this year with exciting technology developments also on the way as after all, EVs are more about software than hardware.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Ride-hailing Seems To Be Making a Comeback But Drivers Seem Hesitant

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Last week, Uber Technologies Inc (NYSE: UBER) and Lyft Inc (NASDAQ: LYFT) showed they are seeing improvement in ride hailing that was strangled by the COVID-19 pandemic.

Uber was saved by its food delivery business

Uber’s first-quarter results come after it announced March was the best month in the company’s nearly 12-year history, as its mobility business reported the most bookings since the start of the pandemic and delivery demand exceeded driver supply.

Q1 figures

Revenue for the quarter came in at $2.9 billion which was below analysts’ estimates. Uber had to deal with a $600 million UK charge, which is merely a glimpse of the costs it could face if it were it is forced to treat its US gig workers as employees. This time, it had to settle with its more than 70,000 UK drivers. During the first quarter, Uber had 3.5 million active drivers and food-delivery workers on its platform, the majority of whom work in the United States.

Excluding that charge, Uber reported $3.5 billion in revenue, up 8 per cent YoY. As has been the case for most of the pandemic, its delivery division accounted for the bulk of sales, at $1.7 billion, a 230% increase from the first quarter of 2020. A one-off, $1.6 billion windfall from the sale of its self-driving division helped the company come within touching distance of a profitable quarter, recording a net loss of $108 million, compared with $2.9 billion in the same quarter a year ago.

Uber recorded $19.5 billion in gross bookings which is the total value of all transactions, marking a 24 per centincrease compared to the same period last year which was marked by the early days of the pandemic.

Uber’s preferred measure of performance and the one it promised to be profitable on by the end of the year, adjusted EBITDA, also came in ahead of analysts’ expectations, with a $359 million loss, 41 per cent better than a year ago.  Narrowing losses by nearly $100 million from the previous quarter, it is important to note this figure excludes one-time costs such as stock-based compensation.

Ride-hailing improvements

In April, Uber’s gross ride-share bookings in the US increased 5 per cent month on month. Also, executives shared data from two of its largest markets for rides and delivery, namely Sydney and New York, that revealed delivery gross bookings were still elevated even after reopenings, which boosted rideshare demand. Uber recorded 98 millionactive users, whether for rides or food which is a 5 per cent increase from the previous quarter but 5 per cent lower than the same period last year.

Incentives for drivers

In addition to distributing free personal protective equipment, Uber announced last month it would spend $250 million as a one-time stimulus to get drivers who are hesitant to ferry passengers over food back on the road.

Lyft’s first quarter results exceeded expectations

Lyft is handing out similar incentives as it will use its cut from elevated pricing to fund investments to bring back more drivers. But, unlike Uber, it managed to beat on the top and bottom lines and exceeded Wall Street’s rider expectations for its first quarter.

Purely ride-hailing company generated $609 million of revenue that resulted in a loss per share of 35 cents. After deducting $180.7 million of stock-based compensation and related payroll tax expenses, net loss for the quarter amounted to $427.3 million whereas net loss margin was 70.2%. One year ago, it amounted to 41.7%.

Adjusted EBITDA loss was $73 million whereas the adjusted EBITDA loss margin was 12%, compared to 8.9% in the same quarter in 2020 and 26.3% in the previous quarter, fourth quarter of 2020.

It is important to highlight that YoY comparisons don’t adequately show the company’s progress since Covid-19 pandemic took hold of the world and severely restricted travel. For example, revenue is down 36% YoY but it increased 7% from the fourth quarter.

Outlook

Lyft reaffirmed its expectation that it will reach sustained adjusted profits on an adjusted EBITDA basis by the third quarter of the year. It also issued guidance for its second quarter, with revenue expected in the range between $680 million and $700 million, which is a 12% to 15% increase quarter over quarter and YoY growth between 100% and 106%. Adjusted EBITDA loss is expected in the range between $35 million and $45 million.

Strategic move to advance the profitability timeline

Lyft sold off its self-driving car unit to a subsidiary of Toyota Motor (NYSE: TM), Woven Planet, for $550 million in cash. This deal is great news for its profitability timeline as it is expected to eliminate $100 million of annualized non-GAAP operating expenses on a net basis.

Outlook – driver supply shortage

Although recovery will take time, as Covid vaccines roll out, state restrictions are lifted, and people feel more comfortable returning to work or traveling, transit companies are slowly showing signs of recovering. Moreover, Uber is confident that its business will benefit from the complementary nature of two of its large core opportunities even in a post-pandemic world as it intertwined its ride-hailing app with its delivery business.

With a resurgence in users, both companies are facing a growing need for more drivers. Lyft executives said they expect issues around supply and demand to continue in the second quarter and ease in the third. Uber executives expect ride-hailing business to bounce back as vaccinations pick up but they also acknowledged the business isfacing the same imminent challenge: not enough drivers.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Updates From the EV World

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EV news just keep on coming. Hyundai Motor Company (OTC: HYMTF) confirmed several new models in an investor presentation. But, in the EV world where software is more important than hardware, equipment makers are just as important as automakers, with a few players even promising to bring the game to a whole new level or change the rules entirely beside well known companies like Tesla (NASDAQ:TSLA) or General Motors (NYSE:GM). One such player is Worksport Ltd (OTC: WKSP) which has partnered with Atlis Motor Vehicles and Hercules Electric Vehicles to configure its revolutionary solar fusion technology TerraVis for their upcoming electric pickups. The company has just issued a progress update this morning to its investors, shareholders, and supporters about how it continues to expand its customer base.

Hyundai provided more details about its ambitious EV plans

Hyundai’s ambitious new-product launch cycle continue going forward with an investor presentation that confirmed several new EV models and updates to existing vehicles due next year.

The Genesis GV70 compact crossover is getting its electric version.  After the established template as theElectrified G80 that looks nearly identical to the gas-powered sedan, the GV70 EV will likely also resemble its gas-powered peer. Hyundai’s EV subrand will also gain a new Ioniq 6 sedan that will join the Ioniq 5 hatchback.

Mid-cycle updates will also be applied to various models beginning with the 2022 Genesis G90, full-size luxury sedan, that will probably arrive later this year. It will likely adopt the same “two lines” styling motif seen on the rest of the luxury brand’s models. Visual updates for the 2023 Hyundai Sonata mid-size sedan and the 2023 Hyundai Palisade three-row SUV have been announced for next year.

Worksport is strengthening its footprint

Following up its announcement from March 16th, Worksport announced this morning that it has officially secured a deal with a new brand in the automotive sector for its Private Label unit.  The innovative designer and manufacturer of tonneau covers is pleased to report that it has a queue of additional customer orders pending as a result of overwhelming product demand. When Worksport realized profitability back in 2019, it was able to do so with just one customer. With three private label customers the Company has gained along with two additional ones that are in the process of being secured, Worksport is on track to achieve profitability once again even after the havoc the COVID-19 brought to supply chains and operations across the industry. Worksport is also reporting that the first shipment from its last signed Private Label brand has already been scheduled for delivery. This major milestone speaks loads about the company’s delivery capabilities. Worksport’s CEO Steven Rossi commented  that strengthening the company’s manufacturing footprint will ensure demand is being met, bringing opportunities previously out of reach and propelling the company to new heights.

These business developments speak volumes to Worksport’s relentless determination and successful execution. It is important to highlight that the private label segment makes non-competing products both in terms of type and cost for Private Label customers, meaning that Worksport provides bespoke products for each customer that do not directly compete with neither each other nor the Worksport brand.  As always, the company isn’t disclosing customer identities to respect its Private Label agreement.

In 2020, we charged towards electric vehicles. By the looks of it, 2021 will be the year of the electric revolution.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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