DIRECTV Announces Second Quarter 2011 Results

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Scott Greczkowski

Scott Greczkowski

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DIRECTV Announces Second Quarter 2011 Results


DIRECTV Revenues Grow 13% to $6.60 Billion

  • Increase driven by DIRECTV Latin America's record subscriber growth and 13% higher Average Revenue per Subscriber, as well as 7% revenue growth at DIRECTV U.S.
  • DIRECTV Latin America adds all-time high 823,000 gross and 472,000 net subscribers in the quarter
Operating Profit before Depreciation and Amortization Increases 13% to $1.85 Billion and Operating Profit Grows 22% to $1.23 Billion

click here for more
 
jcrandall

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A selloff in the stock is normal after an earnings release. Directv, however, is down 6% this morning while the market is down less than 2%.
 
DodgerKing

DodgerKing

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Churn rate up and net additions down. Still had positive sub growth, but very low. Usually profits increase when sub growth decreases within a specified parameter
 
charper1

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the markets ended way down. everyone took a fair beating; even the very strong companies. Companies that most see as "non-essential needs" likely were hit a bit more.
 
jcrandall

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From the earnings call Q&A talking about Nomad, HR34, and more:

Benjamin Swinburne - Morgan Stanley

And one follow-up for Mike. You mentioned a number of product initiatives later this year, the guide and also connected box strategy. The TV Everywhere product, the nomad product, the tablet product, can you just update us there on your plans and when you think that's going to become fully deployed what it looks like when it is?

Michael White

I think the nomad product, which is the ability to port your content from your DVR onto your iPad, I expect you'll see that in some geographies before the end of the year, we're probably going to do with in a fewer geographies to make sure that that's working flawlessly before we roll it out so rollout might be in 2012. But you'll see that before the end of the year, the high-definition user interface comes in the fourth quarter. We'll also, I would expect to be streaming pay-per-view and premium channels on my DIRECTV.com probably in the fourth quarter. I think we're expecting, we're going to launch the Home Media Center, which will have a kind of high and DVR or new subs in the fourth quarter as well space we got a lot of things with I feel pretty good about that will roll into the fourth quarter, albeit will see more of the benefits of that probably in 2012 than in 2011 in terms of the acceleration and momentum.

Benjamin Swinburne - Morgan Stanley

When do these include sort of a robust on demand and maybe even live linear streaming products to the tablet?

Michael White

Well, the light linear stuff is all driven by content rights and most our breakfast candidly. Every program has a different point of view. So I mean, that's not been our focus. Our focus is more things we think we can monetize like VOD, pay-per-view, premium channels like HBO Go and NFL SUNDAY TICKET To-Go, kind of that and then porting your DVR content is kind of our focus. Now we're also working on the ability to stream your iPad in the home and you may see something on that by the end of the year. But the actual kind of live streaming of content is still kind of a work in process. But as I said it's really not and my Chief Technology Officer showed he stream to the NFL Super Bowl -- at the Super Bowl on his iPhone from our broadcast hit here in Marina del Rey. So it's not a technology challenge. It's a rights issue.

DIRECTV's CEO Discusses Q2 2011 Results - Earnings Call Transcript - Seeking Alpha
 
DS0816

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Another take on the issue…



2 Reasons Why DIRECTV Is Losing Subs

By Phillip Swann (08.05.2011) @ 2 Reasons Why DIRECTV Is Losing Subs

But the analysts fail to see the two reasons behind DIRECTV's sudden sub woes. Or, at least, they fail to see one of the reasons.

The first reason, properly noted by some analysts, is that DIRECTV's retention effort was hurt by the long labor dispute that almost prevented the 2011 NFL season. As the exclusive provider of the NFL Sunday Ticket pay package, DIRECTV certainly lost some football fans who feared that the season would not occur.



No, the one reason that DIRECTV executives dare not speak of -- and the analysts are not savvy enough to know about -- is the satcaster's decision to stop adding basic cable channels in HD despite widespread customer unrest over the policy.
 
harshness

harshness

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Usually profits increase when sub growth decreases within a specified parameter
Profits increase when SAC is reduced. Adding 954,000 customers means some relatively huge SAC numbers. SAC should skyrocket in Q3 with all of the free NFLST subscriptions.
 
riffjim4069

riffjim4069

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Wow! DirecTV only added 26K net subscribers this quarter compared to Verizon adding 184K FiOS TV and AT&T adding 202K U-Verse TV subscribers. Also, Comcast lost 238K video subscribers and Time-Warner lost 128K video subscribers. Offhand, Dish will be lucky to break-even this quarter.
 
Juan

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I thought they just passed 30 million subs and all was well.
 
jcrandall

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Juan - They did just pass 30 Million, with Latin America included. Their best growth right now is coming through Latin America.
Investors are worried so to speak as US growth is lower than expected.
 
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