DirecTV Group Inc. said Thursday that its first-quarter profit fell 46 percent as it offered discounts and other promotions to attract and retain satellite TV subscribers.

The El Segundo company reported net income of $201 million (20 cents per share), compared with $371 million (32 cents) a year ago. Revenue rose 7 percent to $4.9 billion.

Analysts surveyed by Thomson Reuters on average expected earnings of 32 cents a share on revenue of $4.95 billion. But the company’s 67 percent jump in U.S. net subscriber additions was well ahead of analyst forecasts.

U.S. monthly churn, which is the rate at which customers leave, dropped 1.33 percent during the quarter. That’s the company’s lowest rate in 10 years, reflecting a greater emphasis on attacting higher credit quality customers.

DirectTV, the nation’s largest satellite TV provider, announced this week that it will merge with Liberty Media Corp.’s entertainment unit, which holds a controlling stake in the company, and spin off into a separately traded company under the DirectTV name.

DirectTV shares were down 32 cents, or 1 percent, to $24.01 in midday trading on the Nasdaq.