DIRECTV US adds 12,000 subscribers; DTVLA adds 361,000 in 1Q 2014

DIRECTV Surpasses 38 Million Total Subscribers in the Quarter

EL SEGUNDO, Calif. — DIRECTV (NASDAQ:DTV) today reported that first quarter 2014 revenues increased 4% to $7.86 billion, adjusted operating profit before depreciation and amortization1 (OPBDA) increased 7% to $2.22 billion, adjusted operating profit increased 7% to $1.51 billion and adjusted diluted earnings per share improved 14% to $1.63 compared to last year’s first quarter.

DIRECTV U.S. Segment

In the quarter, DIRECTV U.S. revenues increased 5% to $6.09 billion compared with the first quarter of 2013 primarily due to strong ARPU growth along with a larger subscriber base. DIRECTV U.S. net subscriber additions of 12,000 were lower than the prior year period primarily due to a higher number of subscriber disconnections associated with the larger subscriber base. Gross additions of 891,000 and the average monthly churn rate of 1.45% were relatively unchanged from the prior quarter. ARPU increased 4.3% to $100.16 mostly due to higher advanced receiver service fees, price increases on programming packages, higher fees for a new enhanced warranty program, as well as increased ad sales and commercial business revenues. These improvements were partially offset by increased promotional offers to new and existing customers. DIRECTV U.S. ended the quarter with 20.27 million subscribers.

Subscriber Data (in 000′s except Churn):

                                             Three Months Ended
                                                      March 31,
                                                2014       2013
                                           ---------  ---------
Subscriber Data (in 000's except Churn)
Gross Subscriber Additions                       891        893
Average Monthly Subscriber Churn               1.45%      1.45%
Net Subscriber Additions                          12         21
Cumulative Subscribers                        20,265     20,105