DirecTV Profit Surges

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DirecTV Inc.’s profit increased 31 percent in the fourth quarter, helped by asset sales and lower tax rates.

The El Segundo satellite TV service provider reported fourth quarter net income of $942 million ($1.55 a share), compared with $718 million ($1.02) for the same period a year earlier. Revenue rose 8 percent to $8.1 billion. The results beat analyst expectations.

DirecTV said it added 103,000 U.S. subscribers in the quarter, helping it reach 20 million subscribers for the first time.

The company also recorded a $111 million pre-tax gain from the sale of an 18 percent ownership in the Game Show Network. The company also cited lower effective tax rates for its increased profits and announced a new $4 billion stock buyback program.

Shares were up less than 1 percent to $51.89 in midday Thursday trading on the Nasdaq.

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