DIRECTV 3rd-Quarter Net Up 24%
Satellite TV provider DIRECTV (NASDAQ: DTV – $64.10) said third-quarter profit grew 24% as the company continued to boost its subscriber rolls in the U.S. and Latin America. Net subscriber gains in DTV’s U.S business totaled 139,000, compared with 67,000 a year earlier. The total subscriber base was about 20.2 million by the end of the quarter, up from 20 million a year earlier. Revenue in its domestic market rose 7% to $6.17 billion. The company, however, added only 260,000 net new subscribers in Latin America, versus 543,000 subscribers added a year earlier. South and Central America is DIRECTV’s primary growth driver where the company has a total of 11.3 million subscribers, up from 9.7 million the year earlier. Revenue in Latin America was up 5.4% at $1.66 billion. In all, DIRECTV reported a profit of $699 million, or $1.28 a share, versus $565 million, or 90 cents a share, a year ago. Revenue improved 6.3% to $7.88 billion. Analysts were looking for earnings of $1.01 a share on $7.84 billion in revenue. Key product initiatives and emerging business opportunities such as advertising, VOD/PPV and commercial services along with DTV’s financial strength and ample cash flow add to its appeal. The shares, not without risk, remain a standout for long-term capital gains for aggressive accounts.