AT&T Inc. (T), in collaboration with NBCUniversal, recently announced that it will deliver content for the coverage of the XXII Olympic Winter Games from Sochi, Russia through its U-verse service. The coverage starts on Feb 6 and will continue through Feb 23.
Through U-verse TV, AT&T customers can access over 1,500 hours of Winter Olympic programming live as well as on-demand. We expect the new agreement to bolster the company’s U-verse services and support revenue growth.
The market reacted positively to the news and AT&T’s stock price moved up 37 cents to close at $32.45 on Nadsaq on Tuesday.
The Olympic coverage will be available on NBC, NBC Sports Network (:NBCSN), MSNBC, CNBC, and USA Network. In addition, through NBCOlympics.com and the NBC Sports Live Extra app – America's Olympic digital destinations – subscribers can stay connected on the go.
Apart from tie-ups with NBCUniversal, AT&T is looking at opportunities to improve its growth profile and competitive position through a number of strategic initiatives. Recently, the company announced a reduction in pricing for family plans, including data on its G LTE network.
Customers with a family of four can now switch to AT&T’s family plan that offers unlimited talk and text, and 10GB of data for $160 a month. The reduced rates are likely to draw more customers to AT&T.
Further, in Jan 2014, AT&T came up with promotional offer of $100 credit for new and existing customers who add an additional smartphone, tablet, feature phone, mobile hotspot or Wireless Home Phone line.
Last year, the company began selling AT&T Next, which offers customers with early upgrades to smartphones and tablets every 12 or 18 months without paying any downpayment, activation charge, upgrade cost or financing fee. The company’s Mobile Share plan is also gaining popularity with already 21 million post-paid subscribers. The company introduced new mobile share value plans to generate more sales as well as greater value to customers given more savings with no annual service contract options.
We believe that this investment program will provide AT&T with a high-potential growth platform for revenues and earnings.
AT&T currently has a Zacks Rank #3 (Hold).