NEW YORK – DirectTV and Dish Network both reported more subscribers in their respective quarterly financials, which also showed higher net profits for both companies.

DirecTV saw another bump up in U.S. subscriber totals during the fourth quarter of 2011, though at a slower rate than in recent periods, and it revealed record new additions in Latin America.

DirecTV reported a net gain of 125,000 U.S. customers, down from 327,000 net additions in the previous quarter, as its churn rate grew slightly to 1.52 percent from a year ago.

Average revenue per U.S. subscriber rose $4.74, to $101.38.

Net income rose 16 percent to $718 million, from $618 million a year earlier, and DirecTV revealed plans for a new $6 billion share-buyback program.

According to a Reuters report, Warren Buffett’s Berkshire Hathaway increased its position in the company three weeks ago to a nearly 3 percent stake, making the firm one of DirecTV’s top 10 shareholders.

Dish Network reported a 22,000 net subscriber gain during the fourth quarter and a 13 percent increase in total revenue to $3.63 billion.

The subscriber gains compared with a 111,000 net subscriber losses in the third quarter, and resulted, in part, from heavy promotion of its Blockbuster Movie Pass bundled services offering.

Dish acquired the video-rental chain out of bankruptcy last year and launched a Blockbuster-branded streaming service in October.

In total for the year, Dish subscribers dropped 166,000, to a total of 13.967 million.

The increase in total revenue, meanwhile, was up from $3.21 billion from the fourth quarter of 2010.

“Dish delivered a quarter and a year of strong growth in net income and total revenue compared to the same period last year,” stated Joe Clayton, Dish Network CEO and president. “By introducing new Blockbusterbranded services, we’ve begun to turn the tide in subscriber losses while continuing to face increased competitive pressures. We look forward to the introduction of our new Hopper product this quarter, the most technically advanced wholehome HD DVR in the world.”

Net income totaled $313 million for the quarter, ended Dec. 31, 2011, compared with $252 million a year ago.

For the year, Dish reported total revenue of $14.05 billion, up 11 percent from the $12.64 billion registered in the period a year ago.

Net income for the year totaled $1.52 billion, compared with $985 million for full year 2010.
Release Date: 
2012-02-28 22:58:00
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Abstract Web: 
NEW YORK – DirectTV and Dish Network both reported more subscribers in their respective quarterly financials, which also showed higher net profits for both companies.
Article Type: 
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