While its investors are worried that AT&T's (NYSE: T) ongoing integration of DirecTV will impact truck rolls for contracted installers, José Ramón Mas, President and CEO of installer MasTec, said the merger should "grow the pie" for his company.
"There's no question that I think AT&T is trying and actually doing a very good job at growing the DirecTV base," Mas said last week during MasTec's fourth quarter earnings call. "I think that's creating more work. There's two workforces that obviously came together. One was the existing workforce that was doing DirectTV like us and others, and then AT&T was doing some of their U-verse installs."
"As you look at the total pie today, the positive is the pie is growing, and I think the need for more work ultimately exists, which I think is good for both parties," Mas added. "It's good for us. There are a number of new opportunities on the install side, including things like wireless local loop that I think will have some solid long-term opportunities. We're excited about our business. It's growing. We had a very good fourth quarter in that business. We're having a really strong start to the year, and we don't expect anything to really change."
Coral Gables, Fla.-based MasTec reported a 7 percent drop in full-year revenue to $521 million for its "communications" division, which handles telecom clients including AT&T. Overall, the company said revenue derived from installation services for AT&T wireless, wireline and home-automation accounts for around 18 percent of its business. Revenue from DirecTV installation work makes up about 14 percent of its overall nut.
MasTec continues to be hammered by the soft oil and gas market, with the company's full-year revenue in that area down 20 percent.
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