Latin America spurs DirecTV to Q1 profit
Michelle Clancy ©RapidTVNews | 11-05-2012
Satellite broadcaster DirecTV saw profits jump 8.5% on the back of Latin America customer growth. The company added 593,000 net subscribers in the region for Q1, up from 427,000 subscribers in Q1 2011.
That brings the total to 8.5 million subscribers in the region, representing a 36% jump year over year. In comparison, net subscriber additions in the U.S business only totaled 81,000, demonstrating waning growth. It added 184,000 subscribers in the year-ago quarter.
DirecTV's overall profits benefitted from the bump: They were a healthy $731 million, up from a profit of $674 million a year earlier. Its total subscriber base stands at 20 million.
Latin America has become the focus for the satcaster as the United States continues to be somewhat stagnant of a market. It recently announced a plan to double its Latin America subscribers to 16 million people, and grow annual revenue to more than $10 billion by 2017.