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DirecTV has reported first quarter 2015 results highlighted by solid subscriber growth across the Americas and strong revenue growth at DirecTV US resulting from improved ARPU and churn performance.
DirecTV’s first quarter revenues of $8.14 billion increased 4 per cent principally due to strong ARPU growth at DirecTV US. First quarter 2015 adjusted OPBDA and adjusted operating profit declined to $2.12 billion and $1.39 billion, respectively, while adjusted OPBDA margin and adjusted operating profit margin declined to 26 per cent and 17 per cent, respectively. The decline in margin was primarily due to lower margins at Sky Brasil mainly due to customer system migration issues, higher programming and subscriber acquisition expenses at DirecTV US and increased general and administrative expenses, mainly at the Sports Networks, Eliminations and Other segment primarily due to merger related costs of $26 million in 2015. Reported OPBDA increased 9 per cent to $2.12 billion and reported operating profit decreased to $1.39 billion.
DirecTV added 279,000 net new subscribers in the quarter.
“Our US business generated another strong quarter of results, further demonstrating our company’s strong execution, as well as product and brand leadership,” said Mike White, president and CEO of DirecTV. “In the quarter, our focus on high-quality new customers combined with an improving economy to enable our lowest first quarter churn rate in six years. Just as impressive was our highest first quarter ARPU growth in five years, as we continue to generate demand for higher-end services and packages, as well as successfully pass through programming cost increases to our customers.”
White added, “In Latin America, challenging foreign exchange headwinds in Brazil weighed on our US dollar results. However, performance in PanAmericana, excluding Venezuela, is exceeding our expectations as the unit grew revenues 19 per cent and OPBDA 33 per cent in US dollar terms.” White finished, “We remain confident that our transaction with AT&T will close in the second quarter, and we are excited to carry our strong operating momentum forward to help create a unique new market leading company.”