DIRECTV Misses Q2 Earnings - Analyst Blog
August 01 2013 - 10:41AM
Zacks
The largest U.S satellite TV operator, DIRECTV
(DTV) posted weak second-quarter 2013 financial results. Total
revenue came in at $7,770 million, up 6.6% year over year, and
marginally beating the Zacks Consensus Estimate of $7,767
million.
Quarterly GAAP net income was $660 million or $1.18 per share
compared with $711 million or $1.09 in the year-ago quarter.
However, second-quarter earnings per share of $1.18 were
significantly below the Zacks Consensus Estimate of $1.29.
Quarterly adjusted operating profit before depreciation &
amortization (OPBDA) was $2,081 million, up 3.6% year over year.
Adjusted operating profit came in at $1,350 million, down 4.3% year
over year.
During the first half of 2013, DIRECTV generated $3,010 million
of cash from operations compared with $3,024 million in the
prior-year period. Free cash flow was $1,430 million in the
reported period compared with $1,607 million in the year-ago
period.
At the end of the first half of 2013, DIRECTV had $2,365 million
in cash & cash equivalents and $18,813 million of outstanding
debt on its balance sheet compared with $1,902 million in cash
& cash equivalents and outstanding debt of $17,162 million at
the end of 2012.
DIRECTV U.S. Segment
Revenues from this segment were $5,943 million, up 5.2% year
over year. Quarterly ARPU was $98.73 compared with $94.40 in the
year-ago quarter. Quarterly operating profit before depreciation
& amortization upped 4.2% to $1,651 million. Operating
profit grew 2.1% to $1,241 million.
Average monthly subscriber churn rate in the reported quarter
was 1.53%, remaining same year over year. Quarterly net subscriber
loss was 84,000 compared with 52,000 in the year-ago quarter. On
Jun 30, 2013, DIRECTV U.S. segment had 20.021 million subscribers,
up 0.5% on an annualized basis.
In the U.S., the pay-TV operators are at present facing intense
competition from large telecom operators and online video streaming
service providers. In the quarter under review, the two large cable
MSOs, namely, Comcast Corp. (CMCSA) and
Time Warner Cable Inc. (TWC) also lost a large
number of video subscribers. Notably, DIRECTV’s closest competitor
DISH Network Corp. (DISH) will report on Aug 6,
2013.
DIRECTV Latin America Segment
This Segment’s revenues were $1,686 million, up 11.8% year over
year. Quarterly ARPU was $51.13 compared with $57.20 in the
prior-year quarter. Quarterly operating profit before depreciation
& amortization increased 2.3% to $455 million. However,
operating profit decreased 38% to $139 million.
Average monthly subscriber churn rate in the reported quarter
was 3.1% compared with 1.8% in the prior-year quarter. Quarterly
net subscriber addition was 165,000 compared with 645,000 in the
year-ago quarter. On Jun 30, 2013, DIRECTV Latin America segment
had approximately 11.077 million subscribers, up 21.5% year over
year.
DIRECTV currently has a Zacks Rank #3 (Hold).
COMCAST CORP A (CMCSA): Free Stock Analysis Report
DISH NETWORK CP (DISH): Free Stock Analysis Report
DIRECTV (DTV): Free Stock Analysis Report
TIME WARNER CAB (TWC): Free Stock Analysis Report
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