DIRECTV Q2 10 results today

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uncrules

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A 100,000 net US adds, while not like it has been in the past, is better than some had expected. Since there was a delay with D12 (and worries if it was having problems) and a lot of grumbling about the lack of any recent HD adds, some people were forecasting a net loss, kind of like E* was experiencing last year.

And I've seen you working at the other place, but trying to downplay the success in the Latin market is just a way of trying to harp on the negative. As a whole D* is making money, even if most of that is in LA. If I was an investor I wouldn't care where the money is coming from. I would be happy that they are making money.

And based on recent trends on this site, it seems like D* will have a better next quarter than E*.
 

harshness

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If I was an investor I wouldn't care where the money is coming from. I would be happy that they are making money.
But if you're a subscriber, the viewpoint should be decidedly different and that's why I offered my caution.
 

DodgerKing

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But if you're a subscriber, the viewpoint should be decidedly different and that's why I offered my caution.
Why?

Did you say the same when Dish had a net loss for two consecutive quarters last year? Will you say the opposite when Direct gains even more subs over the next two quarters? Will you say the same of Dish when they get yet another net loss by quarter 3?
 

harshness

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It wont come in the 3rd quarter, it will come in the 4th quarter as all of the activity happening now is in the 4th quarter! :)
We're just over a third of the way into the third quarter, pilgrim. A notable group of HD adds and MRV were established early in the this quarter, not the quarter starting in October. What remains for this year for DIRECTV would appear to be some more HD adds (both CONUS and LIL) and maybe a real Whole Home DVR.

Q3 will be the big one as it has historically been for DIRECTV as that's the quarter that represents the debuts of the Fall television and NFL seasons.
 

harshness

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Because if you're the board of a company that is trying to decide how to best invest its resources, you usually start with the portions of the business that are likely to yield the best Return On Investment (ROI).

DIRECTV LA is clearly leading the march in terms of profit margin at this point.

This approach is great for investors, but it doesn't necessarily trickle down to those divisions that aren't raking in the dough. Consider what's happening in terms of new product excitement with the Mac product line as compared with the non-computer products from Apple.
 

DodgerKing

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Because if you're the board of a company that is trying to decide how to best invest its resources, you usually start with the portions of the business that are likely to yield the best Return On Investment (ROI).

DIRECTV LA is clearly leading the march in terms of profit margin at this point.

This approach is great for investors, but it doesn't necessarily trickle down to those divisions that aren't raking in the dough. Consider what's happening in terms of new product excitement with the Mac product line as compared with the non-computer products from Apple.
Adding GOL HD is one example of what you are talking about?
 

uncrules

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Because if you're the board of a company that is trying to decide how to best invest its resources, you usually start with the portions of the business that are likely to yield the best Return On Investment (ROI).

DIRECTV LA is clearly leading the march in terms of profit margin at this point.

This approach is great for investors, but it doesn't necessarily trickle down to those divisions that aren't raking in the dough. Consider what's happening in terms of new product excitement with the Mac product line as compared with the non-computer products from Apple.
This is a good point, but just because one division is doing worse business than another business, doesn't necessarily mean you give up on that division. I know that it could, but it doesn't guarantee such. Look at Sony's computer entertainment division (PS3 among other things are in this division). For a while it was losing money, sometimes lots of it. But they kept working at it and now it's profitable.

Hopefully D* will recognize that the domestic business is their core and keep working at it. Besides I do think it will get better. Now with MRV, new HD adds with more coming, paired with the growing unease with some E* subscribers over the increased equipment prices, I think D* is on solid ground.
 

harshness

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Adding GOL HD is one example of what you are talking about?
GOL HD is an example of their commitment to add sports channels. They're openly committed to that space and 2010 will be the year of years for soccer fans who subscribe to DIRECTV.

For those with more general interests, the non-sports, non-premium adds over the last 24 months can be counted on two hands and a few toes. The channels are out there but DIRECTV seems to be focusing their attention elsewhere.
 

DodgerKing

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GOL HD is an example of their commitment to add sports channels. They're openly committed to that space and 2010 will be the year of years for soccer fans who subscribe to DIRECTV.

For those with more general interests, the non-sports, non-premium adds over the last 24 months can be counted on two hands and a few toes. The channels are out there but DIRECTV seems to be focusing their attention elsewhere.
It is also part of their commitment to the LA subs, as Gol TV is part of the LA package and soccer is popular in the LA countries.

Even if this is true or not, Direct will have a better 3rd Quarter. Again, I will predict that Dish will actually have a net loss of subs in the 3rd or 4th Quarter
 

goaliebob99

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-.-. .... .. -.-. .- --. ---
Bob, I think you need a new calendar.

The 4th quarter does not start until September.
The fourth quarter starts on October 1st if you're on an annual financial calendar.

You guys need to get out more often.

According to Wikipedia, the govermental fiscal year is....

[ame="http://en.wikipedia.org/wiki/Fiscal_year"]Fiscal year - Wikipedia, the free encyclopedia@@AMEPARAM@@/wiki/File:Emblem-money.svg" class="image"><img alt="Emblem-money.svg" src="http://upload.wikimedia.org/wikipedia/commons/thumb/f/f3/Emblem-money.svg/75px-Emblem-money.svg.png"@@AMEPARAM@@commons/thumb/f/f3/Emblem-money.svg/75px-Emblem-money.svg.png[/ame]

1st Quarter: October 1, 2009 - December 31, 2009
2nd Quarter: January 1, 2010 - March 31, 2010
3rd Quarter: April 1, 2010 - June 30, 2010
4th Quarter: July 1, 2010 - September 30, 2010

If your going by The taxpayer's fiscal year from the IRS then its

Publication 509 (2010), Tax Calendars

January - March 1st quarter
April - June is the 2nd quarter
July - Setember is the 3rd quarter
October - December is the 4th quarter.


I have allways operated on the Govermental Fiscal year, IE: 1st quarter allways starts in october.
 

harshness

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It is also part of their commitment to the LA subs, as Gol TV is part of the LA package and soccer is popular in the LA countries.
Adding a channel to the DIRECTV US satellites or packages doesn't make it available to the DIRECTV LA customers.

If DIRECTV had to buy Gol HD for the US so it could offer the service to their LA customers, then your argument might have merit. As it is, I'm not sure they offer Gol HD to DIRECTV LA subscribers.
 

uncrules

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To change to subject from the numbers to other things discussed in the conference call, D* mentioned that there would be a redesigned UI next year and they are working on making channel changes faster. The HR24 already has faster channel changes but the other HR boxes could certainly use faster channel changes.
 

harshness

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According to Wikipedia, the govermental fiscal year is....
If DIRECTV was a government agency, you might have an argument.
Wikipedia "fiscal year" said:
Nevertheless, the fiscal year is identical to the calendar year for about 65% of publicly traded companies in the United States and for a majority of large corporations in the UK and elsewhere (with notable exceptions Australia, New Zealand and Japan).
DIRECTV is on an annual fiscal year so we're currently in Q3. We know this because the Q2 release speaks to the "three months ending June 30th".
 

harshness

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To change to subject from the numbers to other things discussed in the conference call, D* mentioned that there would be a redesigned UI next year and they are working on making channel changes faster. The HR24 already has faster channel changes but the other HR boxes could certainly use faster channel changes.
Given that he mentioned PIP in the next breath, I doubt he's thinking of the existing Plus equipment. I don't know if the HR24 has the capacity to do PIP, but I do know that the HR21-23 do not (they lack rendering facilities for a secondary video stream).

The absence of mention of the client-server model and TiVo (while contemplating adding "suggestions") may also be noteworthy.
 
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