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DIRECTV Announces Second Quarter 2011 Results

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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

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


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

 
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.
 
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 - 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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