DirecTV revenue grows but costs dent profit

NEW YORK - DirecTV Group Inc said on Thursday its second-quarter revenue rose 9 percent from a year earlier due to strong subscriber growth, but its profit fell due to costs related to subscriber acquisitions.

By (Reuters)

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Published: Thu 6 Aug 2009, 6:23 PM

Last updated: Thu 2 Apr 2015, 3:43 AM

The US satellite operator said revenue rose to $5.22 billion from $4.81 billion. That was slightly above Wall Street’s average forecast for $5.19 billion, according to Reuters Estimates.

It added a net 224,000 subscribers in the United States, up 74 percent from the year-earlier quarter and higher than some analysts had expected, as it began a joint campaign with AT&T Inc to offer bundled video, phone and Internet services. Kaufman Brothers analyst Todd Mitchell had forecast 205,000 net additions.

Net profit fell to $407 million from $455 million a year earlier due to higher expenses, including costs to acquire subscribers and to improve service quality.

Profit per share was flat at 40 cents a year earlier, however, due to share repurchases. Analysts had expected earnings of 43 cents per share.

DirecTV said average US monthly revenue per user rose 1.7 percent to $83.16 due to price increases and a shift to costlier services like high-definition video, although the gain was somewhat offset by promotions. It faces stiff competition from cable operators and rival Dish Network Corp.

DirecTV has been searching for a new chief executive, and plans to combine with some media assets owned by parent company Liberty Media Corp to create a new, larger company.

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