DirectTV profits off 14%; revenues jump on demand

first_imgThe increase was due mostly to higher prices for programming packages and fees for high-definition and digital video recording equipment, and an extra week of revenues from the company’s pro football broadcast package. Capital spending rose as the company increased the number of high-definition channels it offers and more customers leased digital video recorders. “Now, as we’ve said many times before, we view the increased costs for advanced product to be a value-creating investment, as the higher revenue generates a great return on that incremental investment,” DirecTV CEO Chase Carey said in a conference call with analysts. For the first nine months of the year, DirecTV’s earnings edged up to $1.1billion from $1.06 billion a year earlier. Revenue rose to $12.3 billion from $10.5 billion in the year-ago period. 160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set! AD Quality Auto 360p 720p 1080p Top articles1/5READ MOREStriving toward a more perfect me: Doug McIntyre DirecTV shares jumped 75c ents, about 2.9 percent, to $26.87. The company added 240,000 net subscribers at its core U.S. unit in the period, an increase of 45 percent. Gross subscriber additions rose 2.5 percent. Average monthly churn rate, a measurement of the pace of customer defection, fell to 1.6 percent from 1.8 percent last year. As of Sept. 30, the company’s U.S. subscriber count stood at 16.6 million, up 6 percent from the year-ago total. Average monthly revenue per subscriber rose 8.3 percent to $78.79, compared with $72.74 last year. Satellite broadcaster DirecTV Group Inc. of El Segundo said Wednesday that its third-quarter earnings slipped on higher costs, but revenue rose 18percent from more customers and demand for high-definition and digital video recorder services. For the quarter ended Sept. 30, the company reported net income fell 14percent, to $319million, or 27 cents per share, from $370 million, or 30 cents per share, in the same quarter last year. Revenue surged to $4.33 billion from $3.67billion in the year-ago quarter. Analysts expected a profit of 29 cents per share on revenue of $4.25 billion. last_img

Leave a Reply

Your email address will not be published. Required fields are marked *