DirecTV Group Inc.'s (DTV) second-quarter profit improved 29% as
the television provider continued to add subscribers in the U.S.
and Latin America, helping revenue jump more than analysts
expected.
The company has seen earnings climb on higher revenue while it
has continued to add customers, particularly in Latin America.
Cable providers, by contrast, have seen net declines in their video
subscription counts.
In the latest quarter, DirecTV's U.S. net subscriber additions
were 26,000, down from 100,000 a year earlier. It added a net
472,000 subscribers in Latin America, compared with 415,000 a year
earlier.
DirecTV reported earnings of $701 million, or 91 cents a share,
up from $543 million, or 42 cents a share, a year earlier.
Excluding transaction-related impacts, adjusted earnings were 60
cents in the prior-year period. Revenue climbed 13% to $6.6
billion.
Analysts surveyed by Thomson Reuters expected a profit of 85
cents on revenue of $6.54 billion.
In the U.S., where most of DirecTV's customers reside, its
subscriber base ended the period at about 19.4 million, up 4% from
a year earlier. Churn, the rate of subscriber cancellations, grew
to 1.59% from 1.51% in the U.S. Average revenue per subscriber
climbed 3%.
Shares rose 1.1% to $50.01 in premarket trading.
-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com