DIRECTV Announces First Quarter 2012 Results

DIRECTV Increases Net Additions 10% with a First Quarter Record 674,000

EL SEGUNDO, Calif. — DIRECTV (NASDAQ:DTV) today reported an increase in first quarter 2012 revenues of 12% to $7.05 billion, operating profit before depreciation and amortization (OPBDA) of 8% to $1.90 billion and operating profit of 13% to $1.31 billion compared to last year’s first quarter. DIRECTV reported that first quarter net income increased 8% to $731 million and diluted earnings per share grew 26% to $1.07 compared with the same period last year.

DIRECTV U.S. Segment

In the quarter, DIRECTV U.S. revenues increased 7% to $5.50 billion primarily due to strong ARPU growth and the larger subscriber base. Net subscriber additions declined principally due to lower gross subscriber additions partially offset by a reduction in the average monthly churn rate. The lower gross additions were mainly due to a greater focus on higher quality subscribers and stricter credit policies while the lower churn rate was mainly driven by a greater percentage of subscribers on commitments and auto-bill pay.

Subscriber Data (in 000’s except Churn):

                                       Three Months
                                    Ended March 31,
                                    ---------------
                                      2012     2011
                                    ------   ------
Gross Subscriber Additions             941    1,052
Average Monthly Subscriber Churn     1.44%    1.50%
Net Subscriber Additions                81      184
Cumulative Subscribers              19,966   19,407

DIRECTV Latin America

In the first quarter, DTVLA revenues increased 33% to $1.49 billion principally due to strong subscriber growth partially offset by a 1.8% decline in ARPU. Net additions increased 39% to an all-time record of 593,000 driven by a 35% increase in gross additions to 1.03 million principally due to greater middle market demand across the region, most notably in Brazil, Colombia and Argentina. Also positively impacting net additions was lower total average churn of 1.80% due in large part to higher pre-paid reconnections in PanAmericana. This improvement was partially offset by an increase in monthly post-paid churn in the quarter of 1.47% primarily driven by higher churn in Brazil mostly related to the higher penetration of middle market subscribers.

Subscriber Data (in 000’s except Churn):

                                                   Three Months
                                                Ended March 31,
                                                ---------------
                                                  2012     2011
                                                ------   ------
Gross Subscriber Additions                       1,034      765
Average Monthly Total Subscriber Churn           1.80%    1.87%
Average Monthly Post-paid Subscriber Churn       1.47%    1.43%
Net Subscriber Additions                           593      427
Cumulative Subscribers                           8,464    6,235

DIRECTV Latin America subscriber data exclude subscribers of the Sky Mexico service.

DIRECTV Latin America (DTVLA) owns approximately 93% of Sky Brasil, 41% of Sky Mexico and 100% of PanAmericana, which covers most of the remaining countries in the region. Sky Mexico, whose results are accounted for as an equity method investment and therefore are not consolidated by DTVLA, had approximately 4.28 million subscribers as of March 31, 2012 bringing the total subscribers in the region to 12.75 million.