The DIRECTV Group Announces Third Quarter 2007 Results

Wednesday, November 7th, 2007
DIRECTV logo

DIRECTV Group Revenues Increase 18% to Over $4.3 Billion

  • DIRECTV U.S. Revenues Increase 14% to $3.9 Billion
    • Average Monthly Revenue Per Subscriber (ARPU) Grew 8.3% to $78.79
  • DIRECTV Latin America Revenues Up 67% to $442 Million

DIRECTV Group Operating Profit Before Depreciation and Amortization Increases 12% to $1.0 Billion

  • DIRECTV U.S. Up 11% to $916 Million
  • DIRECTV Latin America Increases 15% to $105 Million

DIRECTV Group Net Subscriber Additions Nearly Double to 401,000

  • DIRECTV U.S. Net Subscriber Additions up 45% to 240,000 Driven by Higher Gross Additions of 1,032,000 and Lower Monthly Churn of 1.61%
  • DIRECTV Latin America Net Subscriber Additions Increase Nearly Fourfold to 161,000 Due to Higher Gross Additions of 289,000 and Lower Monthly Churn of 1.41%

El Segundo, Calif. — The DIRECTV Group, Inc. (NYSE:DTV) today reported that third quarter revenues increased 18% to $4.33 billion and operating profit before depreciation and amortization increased 12% to $1.00 billion compared to last year’s third quarter. The DIRECTV Group reported that third quarter 2007 operating profit of $566 million and net income of $319 million declined 10% and 14%, respectively, compared with last year’s third quarter. Earnings per share were $0.27 compared with $0.30 in the same period last year.

In the third quarter of 2007, The DIRECTV Group’s revenues of $4.33 billion increased 18% over the same period last year principally due to strong ARPU and subscriber growth at DIRECTV U.S. and DIRECTV Latin America, as well as the consolidation of Sky Brazil’s financial results subsequent to the merger with DIRECTV Brazil in August 2006.

DIRECTV U.S. Segment

Gross subscriber additions increased to 1,032,000 and average monthly churn declined to 1.61% primarily due to increased sales of HD and DVR services, as well as increased demand through the direct sales channel. In addition, DIRECTV continues to refine its credit policies to focus on attaining higher quality subscribers. As a result, net subscriber additions increased 45% to 240,000 in the quarter bringing the total number of DIRECTV U.S. subscribers as of September 30, 2007 to 16.56 million, an increase of 6% over the 15.68 million subscribers reported on September 30, 2006.

DIRECTV Latin America Segment

In the third quarter of 2007, DIRECTV Latin America had a nearly fourfold increase in net subscriber additions to 161,000 primarily due to subscriber growth in Brazil, Argentina, Colombia and Venezuela. Also contributing to the net subscriber increase was a decline in aggregate churn to 1.41% in the current quarter primarily due to improved performance in Brazil and Venezuela. The total number of DIRECTV subscribers in Latin America as of September 30, 2007 increased 17% to 3.09 million compared to 2.63 million as of September 30, 2006.