DirecTV Reports Near Tripling Of Q1 Earnings

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El Segundo, Calif. - The

DirecTV Group

reported Thursday that it saw first-quarter net income more than double on increased revenue and margins in the period, although the rate of subscriber growth slowed from a year ago.

The satellite TV service said it added 100,000 net new U.S. customers in the quarter, down from last year's 460,000, which saw an unusually large bump due to the nation's transition to an all-digital terrestrial broadcasting system.

DirecTV said it earned $558 million in the quarter, ended March 31, up from $201 million. Revenue was up 14 percent to $5.6 billion, from $4.9 billion a year ago.

Free cash flow more than doubled to $1 billion.

The average revenue per U.S. subscriber rose 6.4 percent to $85.47, following price hikes and increased take rates on high-definition TV and DVR services. The satellite operator also benefitted from higher advertising sales and an extra week of revenue for its NFL Sunday Ticket package.

Latin American operations also saw a strong rise in revenue, up 30 percent to $779 million, as the service added 221,000 customers in the quarter, up from 148,000.


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