DirecTV delivers $102 ARPU and big customer gains

Michelle Clancy | 06-11-2013
DirecTV beat expectations for the third quarter, recording an incremental gain of 139,000 television subscribers, which is sharply higher rise than the roughly 75,000 additions that analysts had predicted. The gain was notable particularly in light of a weak second quarter, when it lost customers for the second time in its history, shedding 84,000 of its 20 million subscribers. Over all, DirecTV reported profit of $699 million, or $1.28 per share, compared with a profit of $565 million, or 90 cents per share, in the same quarter last year. Revenue was up too, by about 6%, to $7.88 billion, on the back of a rise in ARPU: that hit $102 per subscriber, marking the first time that it has risen above the $100 mark. In Latin America, where the company has focused its growth efforts for the past few quarters, revenue increased 5% to $1.66 billion. The company slowed its customer expansions though, gaining 260,000 subscribers in the regionódown year-over-year from a gain of 543,000.