DirecTV Reports Q3 Revenue, Subscriber Growth - Twice

DirecTV Reports Q3 Revenue, Subscriber Growth

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El Segundo, Calif. -

DirecTV

reported its third-quarter financial results Thursday showing a 13.6 percent  year over year increase in total revenue to $6,844 million and a net increase in U.S. subscribers of 327,000, up from 174,000 at the same point last year.

The direct-to-home satellite TV service showed an average monthly subscriber churn rate in the quarter of 1.62 percent, down from 1.70 percent in the year-ago period.

 As of Sept. 30, DirecTV said it now has 19.76 million total U.S. subscribers, up 4 percent a year ago.

DirecTV attributed the increase in large part to a successful NFL Sunday Ticket promotional campaign.

The company also said it spent $1.45 billion in share repurchases during the period.

DirecTV's increase in total revenue resulted both from its subscriber gains in the U.S. and Latin America, and from solid average monthly revenue per subscriber growth.

Quarterly GAAP net income was $521 million compared with $479 million in the year-ago quarter.

Quarterly operating profit before depreciation and amortization (OPBDA) was $1,584 million, up 6.7 percent from a year ago. Operating profit in the third quarter of 2011 was $1,030 million, up 18.7 percent year over year.

At the end of third quarter 2011, DirecTV generated $3,611 million of cash from operations, compared with $3,825 million in the prior-year period. Free cash flow (cash flow from operations less capital expenditures) in the reported period was $1,451 million, compared with $2,178 million in the year-ago quarter.

Revenue from the U.S. business was $5,421 million, up 7.8 percent year over year, mostly due to the strong subscriber base and significant ARPU growth. Quarterly ARPU was $92.21 vs. $88.98 in the prior-year quarter. Quarterly operating profit before depreciation and amortization was $1,153 million, down 3.3 percent, while adjusted operating profit climbed 11.1 percent to $800 million.

Revenue from the U.S. business was $5,421 million, up 7.8 percent year over year, primarily due to strong subscriber base and significant ARPU growth.

Quarterly ARPU was $92.21, compared with $88.98 in the prior-year quarter. Quarterly operating profit before depreciation and amortization was $1,153 million, down 3.3 percent, while adjusted operating profit climbed 11.1 percent to $800 million.

Revenue from Latin America rose 45.8 percent to $1,356 million, due to strong subscriber growth, particularly in Brazil and higher ARPU, including a massive increase of 178.6 percent in third quarter net subscriber additions of 574,000.

Average monthly Latin American subscriber churn rate in the reported quarter was 1.83 percent, compared with 2 percent from the third quarter of 2010. DirecTV said it now has 11.1 total Latin American subscribers, up 28.4 percent from the year-ago period.

For the future, Mike White, DirecTV CEO, said the company plans to maintain momentum using a DirecTV Anywhere service that brings live-TV streaming and VOD to mobile devices. The company also plans to launch a new HD user interface and home media center.

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