DirecTV doubles operating profit
May 7, 2010
DirecTV reported an increase in first quarter 2010 revenues of 14 per cent to $5.61 billion, operating profit before depreciation and amortization of 44 per cent to $1.58 billion and a more than doubling of operating profit to $956 million compared to last year’s first quarter. DirecTV reported that first quarter net income more than doubled to $558 million.
“We’re starting 2010 with record-setting financial results that point to the tremendous operating and financial strengths of our businesses in both the US and Latin America,” said Mike White, president and CEO of DirecTV. “Driven by our differentiated and compelling suite of products and services offered throughout the Americas, DIRECTV achieved solid double digit revenue growth, significant margin expansion and a more than doubling of free cash flow in the quarter to an all-time high level.”
White finished, “Looking forward, we plan to build on DIRECTV’s operating momentum and its heritage of innovation. We have already begun extending our HD leadership as we launch more than 30 new HD channels over the coming weeks. Later this year, we will introduce several other compelling products including a greatly enhanced DIRECTV Cinema, multi-room viewing, 3D programming and the debut of our much-anticipated home media center. We also have exciting growth plans in Latin America highlighted by unparalleled coverage of the FIFA World Cup beginning next month including the region’s most comprehensive HD coverage and daily broadcasts of original content.”
ARPU of $85.47 increased 6.4 per cent due to programming package price increases, higher HD and DVR service fees, and higher advertising sales. Net additions of 100,000 were lower than a year ago primarily due to last year’s transition of free-to-air broadcasts from analogue to digital as well as a tougher competitive environment. DirecTV US ended the quarter with 18.66 million subscribers, an increase of 3 per cent over the 18.08 million subscribers reported on March 31st, 2009.