AT&T dueling TV deals are a Q4 cannibal

Phone giant AT&T on Wednesday said it signed up more than 200,000 new DirecTV Now streaming video subscribers through Dec. 31 — but posted a net decline in traditional pay-TV subs in the fourth quarter.

Meanwhile, 13 Democratic senators asked the Dallas company to explain how its proposed $85 billion acquisition of Time Warner is in the public interest. The deal is being vetted by federal regulators.

Overall, AT&T’s fourth quarter was in line with Wall Street estimates, despite a net loss of 27,000 traditional pay-TV subs — the result of its AT&T-branded U-verse losing 262,000 subs and DirecTV gaining 235,000.

The DirecTV Now gains left it with more video subs than a year ago.

Chief Executive Randall Stephenson is walking a financial tightrope with AT&T’s DirecTV Now service. Wall Street fears the country’s No. 1 pay-TV provider is undercutting itself.

When DirecTV Now debuted on Nov. 8, it offered a $35-per-month promotion for 100 channels. It threatens to steal business from U-verse.

Stephenson, asked about how a new regulatory and tax environment would affect AT&T, said he hopes that corporate tax reform would stimulate economic growth, leading to increased investment by the firm.

Stephenson, who met with President Trump earlier this month, told investors on the earnings call: “If we want to get off a 1-to-2-percent growth plane, nothing will trigger that like tax reform. We have the highest tax rate in the developed world.”

AT&T, the No. 2 wireless provider, said revenues were $41.8 billion, down from $42.1 billion last year. Adjusted earnings per share were 66 cents, in line with analyst expectations, according to Thomson Reuters.

Net profit was $2.4 billion compared, with $4 billion last year.

AT&T shares gained 6 cents in after-hours trading, to $41.45.