DirecTV Q1 profits up 8%
May 7, 2013
DirecTV has announced an increase in first quarter 2013 revenues up 8 per cent to $7.58 billion, adjusted operating profit up 8 per cent to $1.4 billion, compared to last year’s first quarter.
“Building on the momentum of one of the largest transitional years in our history, DirecTV delivered another strong quarter of operating and financial results,” said Mike White, president and CEO of DirecTV. “Our industry leading revenue growth of 8 per cent continues to be driven by the strength of our premier brands and popularity of our differentiated product and service offerings across the Americas, as well as our ability to profitably grow ARPU in a challenging US operating environment.” White added, “At the same time, our adjusted OPBDA margin grew as we remain focused on achieving operational excellence through disciplined expense management and productivity initiatives, while we continue to return cash to shareholders through stock repurchases at an industry leading clip.”
DirecTV ‘s first quarter revenues of $7.58 billion increased 8 per cent principally due to subscriber growth at DirecTV Latin America (DTVLA) and DirecTV US, as well as higher ARPU at DirecTV US In the quarter, DTVLA recorded a $166 million pre-tax charge ($136 million after-tax) associated with the revaluation of the net monetary assets of the company’s subsidiary in Venezuela at the time of the Bolivar’s devaluation in February. Adjusted OPBDA increased 10 per cent and adjusted operating profit increased 8 per cent in the quarter while adjusted OPBDA margin increased to 27.5 per cent and adjusted operating profit margin was unchanged at 18.6 per cent. Adjusted OPBDA margin improved primarily due to lower subscriber acquisition costs at DirecTV US and Sky Brasil, as well as the absence of an NFL Sunday Ticket game in the first quarter of 2013. Adjusted operating profit margin was also impacted by higher depreciation and amortization at both DTVLA and DirecTV US resulting from higher leased equipment and infrastructure capital expenditures. Reported OPBDA increased 1 per cent to $1.9 billion and reported operating profit declined 5 per cent to $1.2 billion in the quarter.
Adjusted net income attributable to DirecTV increased 13 per cent to $826 million and adjusted diluted earnings per share grew 34 per cent to $1.43 primarily due to the higher adjusted operating profit. Adjusted diluted earnings per share were also impacted by share repurchases made over the last twelve months. Reported net income attributable to DirecTV declined 6 per cent to $690 million while reported diluted earnings per share grew 12 per cent to $1.20 compared with the first quarter of last year.
Cash flow before interest and taxes decreased to $1.11 billion and free cash flow3 decreased to $710 million compared to the first quarter of 2012 primarily due to lower cash generated from working capital mostly due to the timing of receivables and higher capital expenditures at DirecTV US.