DirecTV 3Q Profit Up 290%

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DirecTV Group Inc.’s third-quarter profit soared thanks to higher revenue and a lower rate of customer defection.


DirecTV reported third quarter net income of $370 million (30 cents per share), up 290 percent from $95 million (7 cents) from the same period a year earlier. The jump was mainly due to adding 165,000 net subscribers during the third quarter along with a decrease in the average monthly churn rate, an industry measurement of rate of customer defection, which edged lower to 1.8 percent from 1.9 percent.


Revenue for the El Segundo-based satellite TV provider also was up 13 percent to $3.67 billion, beating Wall Street’s estimates of 27 cents per share on revenue of $3.61 billion, according to Thomson Financial.


Average monthly revenue per subscriber also rose to $72.74 from $68.65 showing that the company’s recent efforts to target customers less likely to miss their monthly payments and more likely to purchase extra services like high-definition channels and pay-per-view broadcasts has paid off.


Shares in the News Corp.-controlled company surged nearly 6 percent in overnight trading and added another 33 cents early on Wednesday to $22.17.

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