DIRECTV Announces Second Quarter 2014 Results

[whitewolf8214]

DIRECTV Announces Second Quarter 2014 Results http://seekingalpha.com/pr/10629695-directv-announces-second-quarter-2014-results



More on DirecTV's Q2
Jul 31 2014, 07:51 ET

DirecTV (NASDAQTV) lost some ground with margin rates during Q2 due to higher programming and subscriber acquisition costs.
The company saw its average revenue per user increase 4.53% to $103.26 in the U.S. during the quarter - an impressive gain compared to peers. The monthly churn rate was stable at 1.55%.
Average revenue per user fell 4.6% in DirecTV Latin America. Currency swings and promotions may have been factors.
Segment revenue: DirecTV U.S. +5.5% to $6.27B; Panamericana +4.6% to $778M, Sky Brasil +7.3% to $1.01B. http://seekingalpha.com/news/1886715-more-on-directvs-q2?app=1



Comcast (NASDAQ:CMCSA) and AT&T (NYSE:T) kept a close eye on their acquisition prizes today as they both showed gains during Q2 for one of the most watched metrics in the pay-TV sector.
Time Warner Cable (NYSE:TWC) grew its average revenue per user by 1.7% to $106.98 and DirecTV (NASDAQTV) saw a 4.5% gain to $103.26 in the U.S.
Merger synergies for the mega-deals are based on ever-rising ARPUs while scale brings down content and acquisition costs.
Today's read from the pay-TV sector is that the U.S. consumer hasn't quite hit the breaking point yet on monthly bill charges.
Regulatory watch: The FCC has started its merger review countdown clock by taking comments from consumer groups. Though Comcast maintains in government filings that acquiring TWC will help consumers, the focus on rising monthly pay-TV bills could take the steam out of that argument.

http://seekingalpha.com/news/1887705-pay-tv-bills-march-even-higher-ahead-of-mega-mergers?app=1

 

[dfergie]

“Building on our first quarter momentum, DIRECTV delivered yet another excellent quarter of operating and financial results,” said Mike White , President and CEO of DIRECTV. “We continue to extend our position as the world’s largest pay TV service with industry leading growth by leveraging the strength of our premier brands and distinctive products and service offerings throughout the Americas.” White added, “DIRECTV Latin America’s second quarter results highlight the tremendous success of our unparalleled FIFA World Cup coverage, while DIRECTV U.S. continues to successfully execute on our overarching goal to balance top line sales with bottom line profitability. Overall, DIRECTV continues to deliver on our strategic imperatives as we prepare for the exciting opportunities that our merger with AT&T will bring to our customers, employees and key stakeholders."

directv.com

 

[iceturkee]

hopefully, someone will ask about SEC network.

 

[gadgtfreek]

Already posted info in the press release. It is done just need to finalize.

 

[acostapimps]

Sooner or later the bubble could burst, although when SEC Network arrives it could help especially in sport bars. PAC 12 even more.

Sent from my SAMSUNG-SGH-I317 using Tapatalk

 

[whitewolf8214]

hopefully, someone will ask about SEC network.

Heard during DirecTV's earnings call
Jul 31 2014, 14:42 ET

Sports were a big topic during DirecTV's (DTV -0.5%) earnings call this afternoon.
The FIFA World Cup was the primary driver of subscriber additions in Q2.
Discussions with Disney are going well. Rates have been agreed upon for a deal covering the SEC network.
Management is very confident a deal will be struck to keep the NFL Sunday Ticket as part of its programming past this year. The package is considered integral to AT&T interest in the pay-TV operator. There is no change in thinking over opening up access to the premium package.
On the stalemate with Time Warner Cable over SportsNet LA, execs say TWC wants the equivalent of $26 per subscriber for the sports package which included the Dodgers. Condolences are offered to Dodgers fans, but there's no room for optimism that a deal is imminent.
Outside of sports, the company indicated that it expects free cash flow to grow over 10% Y/Y in 2014 with U.S. capex spending targeted to be lower.
Earnings call webcast http://seekingalpha.com/article/2363565-q2-2014-directv-group-inc-earnings-conference-call-webcast
http://seekingalpha.com/news/1889255-heard-during-directvs-earnings-call?app=1

 

[whitewolf8214]

DIRECTV's (DTV) CEO Bruce Churchill on Q2 2014 Results - Earnings Call Transcript www.satelliteguys.us/xen/threads/directv-announces-second-quarter-2014-results.340176/#post-3497033

 

[whitewolf8214]

Update: DirecTV Is Still Good Value

Spoiler

Aug. 4, 2014 6:53 AM ET
Summary
DirecTV delivered again very good quarterly results, but the stock hasn't moved.
The price reflects the fear that the AT&T merger might not be completed due to a potential exclusivity loss of the NFL Sunday Ticket or because of regulatory concerns.
As I believe that the company will do fine even without merging, I consider the shares to be attractively priced.
On July 31, DirecTV (NASDAQTV) delivered another set of positive results: ARPU was up 4.6% in the US, while subscribers continued to grow in all its markets and free cash flow was up 24% YoY, reflecting the already anticipated lower capital expenditures in 2014.In my article dated February 20, I had estimated Owner Earnings per share to reach at least $6.50 in 2014. I had also forecasted FCF growth of at least 9%. (According to the Q2 earnings call, DirecTV now guides for 10% FCF growth in 2014.) Hence, even without further share repurchases - which have been halted due to the merger with AT&T (NYSE:T) - I am very confident that the company will reach my target, as even the totally unadjusted GAAP-EPS in the quarter of $1.59 would almost be sufficient if multiplied by 4.
Investors are either believing that the AT&T merger will be approved and expect to receive the agreed premium and nothing more, or they are frightened that the merger might go bust after a potential exclusivity loss for the NFL Sunday Ticket or because of regulatory concerns. The current market price still reflects these three possibilities. Of course it stays below the agreed takeover price, but stays much lower because it might not get completed. Personally I am still holding my DTV shares, believing that either outcome would be great.The company is superbly managed and will continue to do fine for the foreseeable future even without merging with AT&T or without the NFL Sunday Ticket. And if the two companies merge, I will receive $95 for my shares, which represents a generous 10% return on the current share price in probably less than one year, maybe already in autumn, when the NFL question will be off the table.

http://seekingalpha.com/article/2376345-update-directv-is-still-good-value