DirecTV reported that fourth quarter 2007 revenues increased 17 per cent to $4.88 billion, and operating profit increased 4 per cent to $617 million compared to last year’s fourth quarter.
“DirecTV’s content and service leadership continue to drive superior results in a tougher marketplace that reflects increasing competition and a slowing economy. Advanced services–including the launch of the industry’s best HD programming–played an increasingly important role in DirecTV US’s top-line and bottom-line results,” said Chase Carey, president and CEO of The DirecTV Group.
“Strong net subscriber additions of 275,000 were punctuated by the lowest monthly churn rate in eight years. This 15 basis point reduction in monthly churn to 1.42 per cent was largely due to the significant growth in customers with HD and DVR services–increasing from about 30 per cent of our subscriber base last year to over 40 per cent this year–as well as tighter credit policies. The continued strong subscriber growth coupled with an 8.3 per cent increase in ARPU drove revenues. As with churn, the strong ARPU growth reflects the improving quality of our customers who are purchasing an array of new services.”