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Friday, Sep 22, 2023

Higher Sales, Lower Costs Boost DirecTV Profit

DirecTV Group Inc. said Thursday its earnings rose 14 percent in the third quarter as the satellite television operator’s customers spent more on premium services and its capital expenses dropped. But profits were still below Wall Street expectations.

El Segundo-based DirectTV reported net income of $363 million (33 cents per share), compared with $319 million (27 cents) a year ago. Revenue grew 15 percent to $4.98 billion.

Profits were 2 cents short of the 35 cent average estimate of analysts surveyed by Thomson Reuters.

The company said revenue growth was helped by a 49 percent increase in Latin America business. DirecTV also added 156,000 net new U.S. subscriptions in the quarter and revenue increased 6.1 percent as customers added high definition and digital video recorder services.

DirectTV shares were down $1.05, or 5 percent, to $19.78 in morning trading on the Nasdaq.

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