DirecTV feels LatAm squeeze
February 19, 2015
“Our fourth quarter results, although marked by challenging macroeconomic conditions in Latin America and a conscious decision to reinvest in our US business, capped off another strong year of operations for DirecTV. In Latin America, despite the macroeconomic headwinds, our DirecTV and Sky brands attracted over 1.4 million net new customers – surpassing the 19 million cumulative subscriber mark by year-end. More importantly, even excluding Venezuela, DTVLA improved cash flow by over $400 million and generated positive cash flow for the year – easily surpassing our internal plans for the business,” said Mike White , President and CEO of DirecTV.
“And in the US, despite operating in a mature, hyper-competitive market with significant cost pressures, we were able to improve our OPBDA margins for the third consecutive year and surpass all of our 2014 plans for subscriber, revenue, OPBDA and cash flow growth, while also making significant headway on improving both the customer service and entertainment experience,” White added. “The focused performance of our two primary segments resulted in a 21 per cent increase in our consolidated free cash flow, topping $3.1 billion for the year – and leaving us with $4.6 billion of cash on the balance sheet at year end.”
White finished, “2015 will bring additional challenges to our businesses, but given our solid continued operating momentum and the pending merger with AT&T, I am confident that we will continue to drive value for our shareholders for the foreseeable future.”
For the 12 months ended December 2014 the company had revenues of $33 billion and an operating profit of $5.1 billion.