DirecTV's Q2 profit rises 33% as prices rise

Thu, 08/05/2010 - 8:30am
The Associated Press

EL SEGUNDO, Calif. (AP) – DirecTV said Thursday its second-quarter profit rose 33 percent, helped by higher monthly fees.

The nation's largest satellite TV provider said it added 100,000 net U.S. subscribers in the quarter. That was down from 224,000 in the same quarter last year, when it was helped by the shutdown of analog broadcast TV signals.

In Latin America, it had help in the quarter from the World Cup of soccer and added 415,000 subscribers. That was its best result ever in that market and more than three times last year's 128,000 additions. DirecTV owns 74 percent of Sky Brazil and all of PanAmericana, which covers most countries except Brazil and Mexico.

DirecTV ended the quarter with 18.8 million subscribers in the U.S. and 5.2 million in Latin America, excluding Sky Mexico, in which DirecTV owns a minority stake.

DirecTV Inc. reported net income of $543 million, or 42 cents per share, for the period ended June 30, up from $407 million, or 40 cents per share, a year earlier.

Revenue rose 12 percent to $5.85 billion from $5.2 billion a year ago.

Analysts polled by Thomson Reuters had on average forecast earnings of 60 cents per share on $5.73 billion in revenue. The earnings estimates typically exclude one-time items.

Its shares rose 57 cents, or 1.5 percent, to $38.47 in pre-opening trading.

The average monthly revenue per U.S. subscriber was $87.90, up from $83.16 a year ago. The increase was driven by higher programming fees and higher high-definition and DVR service fees. Pay-per-view, premium movie and advertising sales also rose.

More Broadband Direct 8/05/10:

•  Data, phone adds drive Time Warner Cable's Q2 profit
•  Despite subscriber gains, Cablevision's Q2 profit dips
•  Insight ups revenue in Q2
•  Dish to stream live TV on iPad, other devices
•  DirecTV's Q2 profit rises 33% as prices rise
•  Clearwire ups guidance on net adds
•  BigBand Networks reports Q2 sales slump
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