DirecTV CFO: Sees Sales Growth In Mid-Single-Digit Range

DirecTV Group Inc. (DTV) expects to post revenue growth in the mid-single-digit range this year, as well as per-share earnings growth of 50% to more than $2, according to Chief Financial Officer Patrick Doyle.

Analysts have an average estimate of revenue growth of 9% to $23.54 billion and $2.20 a share.

DirecTV, in addition to reporting its fourth-quarter results, said it would buy back $3.5 billion in stock. Doyle told analysts during a conference call that the company's stock is undervalued, and that it would complete the share repurchase by the end of the year.

Making his first public comments was Chief Executive Michael White, who took the reins of the company at the beginning of the year. In taking over, White said his top priority will be increasing customer loyalty.

While DirecTV has tightened its credit policy and pushed for higher quality customers, White said the company would remain competitive in pricing. Doyle added he expects higher average monthly revenue per user this year over 2009.

White said he sees 1.5% as the "sweet spot" of the company's turnover rate.

White also stressed the importance of the mobile strategy.

"Increasingly, our consumers expect us to be a full video provider," he said. "They expect to access that content whenever and wherever they want."

White, however, played down the need to invest in wireless infrastructure in the U.S. He did acknowledge possibly looking at mobile deployments in the international markets.

The Latin American business continues to do well as a result of higher demand for advanced services such as high-definition programming. Bruce Churchill, who runs the group, said he expects similar to slightly higher customer growth for the division this year.

DirecTV shares rose 3.5% to $32.76 in recent trading.

-By Roger Cheng, Dow Jones Newswires; 212-416-2153; roger.cheng@dowjones.com

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