DIRECTV Announces Record Setting Year with 4th Quarter Results

[Scott Greczkowski]

DIRECTV Fourth Quarter Results Complete Another Record Setting Year for the Company

DIRECTV Adds 667,000 Net New Subscribers in Q4 or 79% More Than a Year Ago Representing the Largest Quarter in 10 Years

* For the year, DIRECTV Latin America added a record 1.2 million net new subscribers or 76% more than a year ago bringing its cumulative subscriber total to 5.8 million or 8.9 million including Sky Mexico
* DIRECTV U.S. attained 663,000 net new subscribers in 2010 surpassing 19.2 million total customers driven by low churn of 1.53% and 4.1 million gross subscriber additions

DIRECTV Q4 Revenue Growth of 11% to $6.6 Billion and Operating Profit before Depreciation and Amortization Growth of 13% to $1.7 Billion Cap Record Year

* DIRECTV Latin America full year revenues grow 25% and operating profit before depreciation and amortization increases 67% driven by strong subscriber growth
* DIRECTV U.S. 2010 revenues increase 9% fueled by 4.9% ARPU growth while operating profit before depreciation and amortization climbs 11%

DIRECTV Increases Full Year Adjusted EPS 72% to $2.48 and Grows Full Year Free Cash Flow 18% to a Record $2.8 Billion

DIRECTV Board Approves $6 Billion Stock Repurchase Program



EL SEGUNDO, Calif.--(BUSINESS WIRE)-- DIRECTV (NASDAQTV) today reported an increase in fourth quarter 2010 revenues of 11% to $6.62 billion, operating profit before depreciation and amortization(1) (OPBDA) of 13% to $1.68 billion and operating profit of 23% to $1.06 billion compared with last year's fourth quarter. DIRECTV reported fourth quarter net income of $618 million and diluted earnings per share of $0.74 compared with a net loss of $32 million and a loss per share of $0.03 in the fourth quarter of 2009.

"Our fourth quarter results capped off one of DIRECTV's strongest years ever as we further extended our position as the world's largest provider of pay television services with over 28 million subscribers in the U.S. and Latin America," said Mike White, president and CEO of DIRECTV. "Fueled by the best quarter in a decade with 667,000 consolidated net additions, DIRECTV added 1.9 million new subscribers in 2010 representing the second best year in our history. In many ways our financial results were even stronger as we again generated industry-leading growth in revenue and operating profit before depreciation and amortization in 2010 of 12% and 20%, respectively. These strong results combined with our share repurchase program fueled a 72% increase in adjusted EPS to $2.48 and an 18% increase in free cash flow to a record $2.8 billion."

White continued, "We exit 2010 with good momentum and look to build on that in 2011 with a strategy designed to maintain our industry-leading revenue and earnings growth. In the U.S., our strategy focuses on delivering the best television experience both inside and outside of the home, generating incremental revenue streams in key areas such as DIRECTV Cinema, commercial and local/addressable advertising, as well as capturing productivity improvements throughout our company. In Latin America, our priority will be to continue leading the market in HD and DVR services while introducing exciting new products and services that target the rapidly growing middle market segments." White added, "With the successful execution of these strategies along with our plan for returning excess cash to shareholders, we remain confident in our ability to continue creating significant shareholder value as we strive to achieve our EPS target of $5 per share in 2013."

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DIRECTV, Inc. - DIRECTV Fourth Quarter Results Complete Another Record Setting Year for the Company

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Warning: This is an Old Thread This discussion is older than 90 days. information contained in it may no longer be current

[SkiKing]

I knew they would have a good quarter, but I expected it to be more of the same. I didn't realize it would be this good. I think the key is the low churn rate. They are keeping the subs they currently have.

Revenue up for the quarter and the year. Net and gross sub additions up for the quarter and the year. Churn rate down.

[juan]

Im confused..at one point they 667,000 new subs for the 4th quarter then they say 663,000 New (NET) US customers for the year

[ckhalil18]

If anyone's interested, here's what Bloomberg is reporting about Directv earnings for Q4 2010 which came out today.


DirecTV Profit Beats Analysts' Estimates on Video, High-Definition Demand - Bloomberg

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EDIT: Here's what Directv is saying

http://dtv.client.shareholder.com/re...leaseID=551879

[jcrandall]

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Im confused..at one point they 667,000 new subs for the 4th quarter then they say 663,000 New (NET) US customers for the year

I think 667k in Q4 was company wide (including Latin America), and the 663k net for the year is just US.

[jcrandall]

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That was a very good quarter, much better than anyone would have expected, and the market shows it, Directv stock is up 4% in the first couple hours since the earnings release.