DirecTV’s third quarter revenues increased 6 per cent to $8.37 billion on strong ARPU growth at DirecTV US as well as subscriber growth at DirecTV Latin America (DTVLA) over the last twelve months.
Adjusted adjusted operating profit both increased 5 per cent to $2.04 billion and $1.28 billion, respectively, compared to the third quarter of 2013. Reported operating profit was relatively unchanged at $1.22 billion in the third quarter.
In the third quarter of 2013, DTVLA settled a fee dispute and paid $92 million to Escritório Central de Arrecadação e Distribuição, or ECAD, the organization in Brazil responsible for collecting performance rights fees under Brazilian law. The settlement resulted in a $128 million pre-tax gain for the reversal of amounts previously expensed. The gain was comprised of a reduction in “Broadcast Programming and Other” of $70 million, a reduction in “Interest Expense” of $37 million and $21 million in “Other, net” in the Consolidated Statements of Operations.
Third quarter adjusted net income attributable to DirecTV declined to $673 million, as the higher adjusted operating profit was more than offset by the impact of the favourable ECAD settlement in the prior year period. Adjusted diluted earnings per share grew 4 per cent to $1.33 in the quarter due to the impact of share repurchases made prior to the announcement of the pending transaction with AT&T.
DirecTV’s revenues for the first nine months of 2014 of $24.34 billion increased 5 per cent principally due to higher ARPU at DirecTV US as well as subscriber growth over the last year at DTVLA. These increases were partially offset by lower ARPU at DTVLA primarily due to unfavourable changes in exchange rates.
Operating profit increased 6 per cent to $4.22 billion compared with the same period of 2013.