DirecTV Profits in Line with Expectations

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The DirecTV Group Inc. said Thursday that second quarter net income rose 2 percent, slowed by higher marketing expenses, dealer incentives and installation costs. Earnings were in line with Wall Street expectations.

The El Segundo-based satellite TV provider earned $455 million, or 40 cents per share, for the quarter ended June 30. Revenues rose 16 percent to $4.81 billion Analysts polled by Thomson Financial’s First Call had expected earnings of 40 cents per share on $4.71 billion in revenue.

The company said it added a net 129,000 U.S. subscribers in the quarter to total 17.1 million, 5 percent more than a year ago. Five analysts polled by Reuters had forecast DirecTV to add 122,000 subscribers.

Customer churn, a key industry metric measuring the rate of customer losses each month, was reduced to 1.49 percent compared with 1.58 percent a year ago, the company said.

In the Latin American market, where DirecTV owns a 74 percent stake in PanAmericana and Sky Brazil, there was a 49 percent increase in revenue and 184,000 subscribers were added to total 3.7 million.

After earlier falling 32 cents, shares of DirecTV recovered slightly and was down 22 cents, or 1 percent, to $27.02 in mid-morning trading on the Nasdaq.

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