United States telecommunications giant AT&T will be restructuring its operating segments before it releases its results for the third quarter on Oct. 22.
Previously, AT&T reported its financial results in three segments: Wireless, Wireline and International. With the restructuring, AT&T will be reporting its financial results in four segments, namely Business Solutions, Consumer Mobility, Entertainment & Internet Services and International.
In addition, AT&T will be reporting its wireless financial results in a manner completely different from the reporting style of its rivals Verizon, Sprint and T-Mobile.
The Business Solutions segment will be providing both the wireless and wireline services to individual subscribers that acquire services through plans sponsored by their employers, as well as to business customers.
The Consumer Mobility segment will be providing the triple-play wireless services of voice, high-speed Internet and video to consumers, wholesale and resale subscribers within the United States. The home monitoring service of AT&T will fall under this segment.
The Entertainment & Internet Services segment will be providing services related to video, voice and high-speed broadband Internet to United States residential customers. The United States operations of DirecTV, the satellite TV operator which AT&T acquired earlier in the year, for $48.5 billion, will be under this segment.
Lastly, the International segment will be made of up the operations in Latin America of DirecTV and the business in the Mexican branch of AT&T. AT&T is notably expanding the company's operations in Mexico, as it acquired Nextel Mexico and Grupo Iusacell.
A recent filing with the SEC stated that upon the filing of its financial results for the third quarter, AT&T's biggest segment will be Business Solutions, followed in order by Entertainment & Internet Services, Consumer Mobility and International.
AT&T, however, said that it will be writing down $1.1 billion from its books in relation to Venezuelan assets owned by DirecTV. DirecTV had valued the assets at $1.17 billion, but amid the devaluation of the Venezuelan bolivar and the application of a conservative exchange rate, the value of the assets will be reduced to a mere $75 million.
Despite the $1.1 billion markdown, AT&T reaffirmed its expectations for growth on its full-year adjusted profit and revenue.
