DIRECTV Latin America subscribers up 31% in 2012; U.S. flat at 20 million

Thursday, February 14th, 2013
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DIRECTV Adds 761,000 Net Additions in the Quarter Driven by DIRECTV Latin America’s All-Time Record of 658,000.

  • For the year, DIRECTV Latin America sets record with 4.4 million gross additions and 2.4 million net additions while Sky Mexico adds 1.1 million net new subscribers.
  • DIRECTV U.S. adds 199,000 net new customers in 2012.

EL SEGUNDO, Calif. — DIRECTV (NASDAQ:DTV) today reported increases in fourth quarter 2012 revenues of 8% to $8.05 billion, operating profit before depreciation and amortization (OPBDA) of 8% to $1.92 billion and operating profit of 7% to $1.30 billion compared to last year’s fourth quarter. DIRECTV reported an increase in fourth quarter net income of 31% to $942 million and diluted earnings per share of 52.0% to $1.55 compared with the same period last year.

DIRECTV U.S. Segment

Net subscriber growth in the quarter of 103,000 decreased from the prior year period principally due to lower gross subscriber additions partially offset by a lower average monthly churn rate. Gross additions declined mainly due to a greater focus on higher quality subscribers and stricter credit policies. DIRECTV U.S. ended the quarter with 20.08 million subscribers, an increase of 1% compared with 19.89 million subscribers reported for the year ended December 31, 2011.

Net subscriber growth in the year of 199,000 decreased from the prior year principally due to lower gross subscriber additions mainly due to a greater focus on higher quality subscribers and stricter credit policies, as well as lower gross additions from the Telco sales channel.

Subscriber Data (in 000’s except Churn)

                                          Three Months       Twelve Months
                                    Ended December 31,  Ended December 31,
                                    ------------------  ------------------
                                        2012      2011      2012      2011
                                    --------  --------  --------  --------
Gross Subscriber Additions               963     1,030     3,874     4,316
Average Monthly Subscriber Churn       1.43%     1.52%     1.53%     1.56%
Net Subscriber Additions                 103       125       199       662
Cumulative Subscribers                20,084    19,885    20,084    19,885

DIRECTV Latin America

In the fourth quarter, net additions increased to a record 658,000 driven by higher gross additions partially offset by higher average monthly churn on the larger subscriber base. Gross additions increased 23% to a record of 1.18 million principally due to greater middle market demand across the region, most notably in Brazil, Argentina, Colombia and Venezuela.

DTVLA ended the quarter with 10.33 million subscribers, an increase of 31% compared with 7.87 million subscribers reported for the year ended December 31, 2011.

In 2012, net additions increased to a record 2.44 million driven by more gross additions partially offset by higher average monthly churn on the larger subscriber base. Gross additions increased 26% to a full year record of 4.42 million principally due to greater middle market demand across the region, most notably in Brazil, Argentina, Colombia and Venezuela.

Subscriber Data* (in 000’s except Churn)

                                          Three Months       Twelve Months
                                    Ended December 31,  Ended December 31,
                                    ------------------  ------------------
                                        2012      2011      2012      2011
                                    --------  --------  --------  --------
Gross Subscriber Additions             1,183       965     4,417     3,510
Average Monthly Subscriber Churn
  Total                               1.75%      1.65%     1.81%     1.78%
  Post-paid                           1.48%      1.42%     1.50%     1.42%
Net Subscriber Additions                658        590     2,439     2,063
Cumulative Subscribers               10,328      7,871    10,328     7,871

* DIRECTV Latin America subscriber data exclude subscribers of the Sky Mexico service. In addition, DTVLA gross and net additions exclude 4,000 video subscribers acquired in the fourth quarter, 2012 and 18,000 video subscribers acquired during the full year 2012 in recent transactions. DTVLA cumulative subscriber counts include these acquired customers.

DIRECTV Latin America 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 5.15 million subscribers as of December 31, 2012, bringing the total subscribers in the region to 15.48 million.