DirecTV Seeks To Double Latin America Revenue, Subscribers

NEW YORK (DOW JONES)--DirecTV Group Inc. (DTV) Thursday outlined new details on its expansion efforts in Latin America, which is becoming the satellite television company's main source of growth as its U.S. markets mature.

As part of a new five-year plan, DirecTV aims to double its Latin America subscribers to more than 16 million and annual revenue to more than $10 billion. Operating profit before depreciation and amortization is also expected to increase to $3 billion, from around $1.7 billion at present, the company said at an investors day in New York.

DirecTV executives pointed to economic growth and new household formation in the region--particularly in Brazil--as a source of growth.

DirecTV also benefits from lower programming costs and pays fewer affiliate fees in the region than in the U.S., even though the average revenue DirecTV earns from each subscriber is lower in Latin America than in the U.S.

DirecTV plans to invest in better customer service and technology, including potential spectrum investments, in order to support its expansion efforts in the region.

-By William Launder, Dow Jones Newswires; 212-416-3412; william.launder@dowjones.com

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