NEW YORK - DirecTV Group Inc., large satellite TV operator of the nation, said Thursday its profit rose 21 percent in the first quarter as it continued to grow faster that the rival Dish Network.
El Segundo, Calif. - based DirecTV added a net 611,000 subscribers in the January to March, the second best result in a decade after 667,000 additions in the fourth quarter.
As has been the trend over the past two years, DirecTV Latin America operations accounted for most of the new subscribers. But the company also added 184 000 subscribers in U.S., up to 100,000 a year ago. DISH Network Monday reported adding 58 000 subscribers to the same period.
DirecTV shares reached a new record of $49.64 Thursday, but retreated during a conference call that frames held with investors and analysts. In afternoon trade, the shares were 20 cents, or 0.4%, to $48.30.
CEO Mike White, said at the time of the call that he had seen an increase in competing bids in the United States, which caused an increase in "churn", or the rate of customers. However, there do not think that this puts all year company forecast at risk.
In Latin America, the solid first quarter performance prompted the company to raise its revenue growth forecast for the full year to 30 per cent to 20 per cent. The company benefits from the rise of the middle class on the continent, particularly in the Brazil but its Latin American operations are only 22 per cent of total income.
DirecTV the end of the quarter with 19.4 million U.S. subscribers, keep its position as the second provider of pay television in the United States, after the cable operator Comcast Corp..
DirecTV said its net income increased to 674 million, or 85 cents per share, 558 million, or 59 cents per share, a year ago.
Analysts surveyed by FactSet expected earnings of 71 cents per share, on average, although they were probably exclusion of 25 million pre-tax gain from the sale of a stake in the network of television game.
Revenue increased 13% to 6.32 billion from $ 5.61 billion, helped by subscriber growth and higher monthly fees. Analysts expected 6.23 billion.
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