AT&T unveiled solid first-quarter earnings on Tuesday, with good news for DirecTV on the domestic front in the form of 328,000 new video subscriber additions.

On the downside, AT&T’s U-verse saw a drop of 382,000 video subs, which left AT&T with a net loss of 54,000 video subscribers for the quarter. Between the two video services AT&T serves up subscription TV to 25.3 million subscribers. The telco giant’s total subscriber additions for the quarter were up with the addition of 186,000 net broadband subs.

AT&T CEO Randall Stephenson emphasized that the integration of DirecTV and U-verse into a single entertainment group is on track. He reiterated that he expects the company to have a net add of video subscribers by year end. He noted that promotional efforts to unify AT&T’s marketing and service approach will not be “fully ramped” until the second half of the year. He also said the entertainment group is on track to realize $1.5 billion in post-merger savings.

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AT&T also stressed that advertising sales via DirecTV has grown to a $1 billion annual revenue stream.

Total revenue for AT&T’s entertainment group was $12.65 billion, with net income of $1.59 billion. Stephenson noted that DirecTV during the quarter finally launched its authenticated streaming service. And it is expanding its foothold in the OTT arena through its investment in FullScreen with Chernin Group’s Otter Media.

“We’re seeing good momentum with our initial integrated wireless, video and broadband offers. And we’ll expand the integrated choices for customers in the fourth quarter when we launch our new video streaming services,” Stephenson said.