11.06.2008 09:35 AM
DirecTV Revenue Up 15 Percent to $5B

The DirecTV Group Inc. reported that third quarter revenues of $4.98 billion, up 15 percent from the same quarter last year. Operating jumped 16 percent to $658 million. Net income grew 14 percent to $363 million and earnings per share rose 22 percent to 33 cents.

The 156,000 net subscriber additions in the quarter were significantly lower than last year’s third-quarter total of 240,000, as the tough economic environment increased customer churn. But ARPU grew 6.1 percent to $83.59, mainly due to programming package price increases and higher HD and DVR service fees.

Still, the growth fell just short of some analysts’ forecasts, and DirecTV’s stock price fell about a dollar on the financial news Thursday morning to below $20. In early September, the stock traded above $27.

"In an increasingly challenging economic and competitive environment, we're continuing to see strong consumer demand for DirecTV's unique and differentiated content including its industry-leading HD, DVR and interactive services,” Chase Carey, DirecTV Group president and CEO, said in a statement.

In the United States, solid DirecTV subscriber growth, along with the increase in ARPU pushed revenues up 11 percent to $4.3 billion. Strong revenue and a 31 percent decline in capital expenditures (primarily lower set-top box costs and an increasing use of refurbished set-top boxes) led to an 85 percent hop in cash flow. Latin America revenues grew 49 percent to $658 million.

Partially offsetting the rise in operating profits was increased interest expenses, thanks to increased debt.














Post New Comment
If you are already a member, or would like to receive email alerts as new comments are
made, please login or register.

Enter the code shown above:

(Note: If you cannot read the numbers in the above
image, reload the page to generate a new one.)

No Comments Found

Thursday 11:07 AM
The Best Deconstruction of a 4K Shoot You'll Ever Read
With higher resolutions and larger HD screens, wide shots using very wide lenses can be a problem because they allow viewers to see that infinity doesn’t quite resolve into perfect sharpness.

Featured Articles
Discover TV Technology