Latin America Drives DirecTV's Q1604K Net New Customer Additions for Satellite TV Giant 5/07/2013 8:53 AM Eastern
DirecTV reported stronger than expected first quarter results Tuesday, driven by continued robust growth at its Latin American operations and a steady showing in the United States.
DirecTV added a total of 604,000 net new subscribers in the period, the bulk of that growth (583,000) occurring in Latin America. But analysts were also encouraged by steady growth in the U.S. – the 21,000 domestic net new additions were only slightly below consensus estimates of 25,000 additions, and revenue and cash flow growth soundly beat predictions.
“[The] U.S. results indicate [DirecTV’s] strategy to selectively manage gross [additions], focus on retention and grow ARPU is paying off,” wrote Morgan Stanley analyst Ben Swinburne in a research note.
Consolidated revenue rose 8% to $7.6 billion – driven by a 5% increase in the U.S. and a 16% rise in Latin America. Consolidated operating profit before depreciation and amortization (OPBDA) rose 10% to $2.1 billion -- up 8% in the U.S. and 17% in Latin America.
Investors appeared pleased with the results, driving DirecTV shares up 6.9% ($3.99 each) May 7 to $61.95 per share.
"Building on the momentum of one of the largest transitional years in our history,
DirecTV is scheduled to hold a conference call with analysts to discuss quarterly results at 2 p.m.