Wednesday, February 07, 2007

Satellite TV Thriving: Direct TV Q4 Profit Doubles

Story Stocks, Active Portfolio - to Liberty Media (LCAPA), posted net earnings of $356 million, or $0.29 per share, up from $121.2 million, or $0.09 per share, a year earlier. Analysts, however, were expecting a slightly higher profit of $0.30 per share, according to Reuters Estimates.
Revenue for the quarter rose 16% to $4.18 billion, versus the consensus estimate of $4.09 billion, fueled by a 6.8% increase in average monthly revenue per subscriber to $80.70, and a larger subscriber base at DirecTV US. Gross subscriber additions of over 1 million were 6% higher year/year, but more importantly the company said it attained an even greater growth rate for higher-quality subscribers, which helped cut its churn rate from 1.70% last year to 1.57%. The higher gross additions combined with the lower rate of customer defections drove a 38% increase in net subscriber additions to 275,000 in the quarter.

Labels: earnings, satellite tv