AP BUSINESS WIRE
Thursday, November 3, 2005 · Last updated 6:11 a.m. PT
DirecTV returns to 3Q profit, revenue up
THE ASSOCIATED PRESS
EL SEGUNDO, Calif. -- DirecTV Group Inc., the nation's largest direct broadcast satellite provider, said Thursday it returned to a profit for the third quarter, as strong subscriber growth helped boost revenue 13 percent.
Earnings totaled $94.6 million, or 7 cents per share, for the three months ended Sept. 30 compared to a loss of about $1.01 billion, or 73 cents per share, a year ago. Revenue increased to $3.23 billion from $2.86 billion.
The company said its results were driven by the revenue gains and better cost control. Last year's results were also weighed down by a $903 million charge for an asset write-down, while this year's included a one-time gain of $30 million from an asset sale.
Analysts were expecting DirecTV to report earnings, excluding unusual items, of 5 cents per share on revenue of $3.27 billion, according to Thomson Financial.
DirecTV said strong U.S. subscriber growth and higher average monthly revenue per subscriber helped boost overall revenue for the quarter.
The company counted gross subscriber additions of 1.1 million, but said its monthly average churn rate, or the number of new customers who later drop service, "remained unacceptably high" at 1.89 percent in the quarter. After accounting for churn, DirecTV said it added 263,000 net subscribers in the quarter.
Thursday, November 3, 2005 · Last updated 6:11 a.m. PT
DirecTV returns to 3Q profit, revenue up
THE ASSOCIATED PRESS
EL SEGUNDO, Calif. -- DirecTV Group Inc., the nation's largest direct broadcast satellite provider, said Thursday it returned to a profit for the third quarter, as strong subscriber growth helped boost revenue 13 percent.
Earnings totaled $94.6 million, or 7 cents per share, for the three months ended Sept. 30 compared to a loss of about $1.01 billion, or 73 cents per share, a year ago. Revenue increased to $3.23 billion from $2.86 billion.
The company said its results were driven by the revenue gains and better cost control. Last year's results were also weighed down by a $903 million charge for an asset write-down, while this year's included a one-time gain of $30 million from an asset sale.
Analysts were expecting DirecTV to report earnings, excluding unusual items, of 5 cents per share on revenue of $3.27 billion, according to Thomson Financial.
DirecTV said strong U.S. subscriber growth and higher average monthly revenue per subscriber helped boost overall revenue for the quarter.
The company counted gross subscriber additions of 1.1 million, but said its monthly average churn rate, or the number of new customers who later drop service, "remained unacceptably high" at 1.89 percent in the quarter. After accounting for churn, DirecTV said it added 263,000 net subscribers in the quarter.
