DirecTV Misses Wall Street ExpectationsThursday, August 1, 2013
DirecTV on Thursday missed second-quarter profit forecasts and admitted that it had added fewer Latin American subscribers than expected, a potential sign that the satellite TV provider’s fastest-growing market is faltering.
The El Segundo company, which is the largest U.S. satellite TV service, reported net income of $660 million ($1.18 a share), 8 percent higher than in the same period a year earlier. But analysts surveyed by Thomson Reuters on average had expected profit of $1.33 a share.
Revenue rose 6 percent to $7.7 billion, slightly lower than the Wall Street consensus of $7.75 billion.
DirecTV in June warned that it would take a charge in the quarter to adjust for inflated subscriber numbers reported by its Sky Brasil operation. The company discovered that some employees artificially reduced attrition rates by improperly crediting subscriber accounts to reduce or eliminate balances owed.
In the earnings release, Chief Executive Mike White focused on other metrics, including a 15 percent rise in free cash flow before interest and taxes.
Shares closed down $1.28, or 2 percent, to $62 on the Nasdaq.