The DIRECTV Group Announces Third Quarter 2007 Results

[dfergie]

EL SEGUNDO, Calif.--(BUSINESS WIRE)--Nov. 7, 2007--The DIRECTV Group, Inc. (NYSETV):
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%

The DIRECTV Group, Inc. (NYSETV) today reported that third quarter revenues increased 18% to $4.33 billion and operating profit before depreciation and amortization(1) 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.

For More And Source Please CLICK HERE

 

[RealityCheck]

Another key quote from that press release:

The increase in gross additions to 1,032,000 was fueled by dramatic growth in the demand for advanced services -- over 50% of new subscribers in the quarter signed up for HD and/or DVR services compared to only 28% a year ago.

 

[ScoBuck]

All of the above seems to be good news - the part about 50% of new subs getting advanced products is OVER 500k new adds in that category. That is a good sign for them for sure - those advanced product subs have the lowest churn and spend the most.

 

[Scott Greczkowski]

A lot of these folks must be signing up directly through DirecTV, as the retailers are all telling me their sales have taken a noise dive (for both satellite providers)

 

[ScoBuck]

Well - I'm getting ready to listen to the D* conference call - it starts at 2pm ET.

Here's the link for anyone interested:

DirecTV - Investor Relations - Investor Relation Home

 

[ScoBuck]

A lot of these folks must be signing up directly through DirecTV, as the retailers are all telling me their sales have taken a noise dive (for both satellite providers)

Bingo - Chase said this was a highlight - they had over 45% of their new sales from their direct channel.

 

[rad]

Chase made a comment about costs and looking at the HD and DVR products since they charge per the household. Wonder if they'll follow the E* model and have a per DVR charge, sure hope not.

 

[ScoBuck]

Chase repeated - they expect close to 100 National HD channels by year end. And they will add HD locals this year.

 

[ScoBuck]

Chase said the Liberty Media deal is still on track and he expects it to close this year.

 

[ScoBuck]

They are not yet going to reach out nationally to MPEG2-HD customers, they are letting those legacy subs contact them.

But they will start reaching out to those HD subs - starting in L.A.

 

[digiblur]

If I had a nickel for every long and loud "UM!" I'd be rich!

 

[rad]

Chase mentioned HD DVR costs going from $430/$440 range to $250. Gee, wonder if that savings is coming from removing ATSC tuners

 

[ScoBuck]

aha, finally an AT&T question - Chase said they are talking about their bundling relationship. Not really more than that to add he said.

 

[ScoBuck]

He said that at end of year they expect about 500,000 legacy MPEG2 HD customers will still exist, down from 800,000 at start of year.

 

[iceturkee]

i couldn't listen to the conference call. any updated hd news?

 

[rad]

i couldn't listen to the conference call. any updated hd news?

Nope, only to say they plan to be 'close' to 100 HD channels by EOY.

 

[iceturkee]

Nope, only to say they plan to be 'close' to 100 HD channels by EOY.

thanks.

 

[Aridon]

I'm curious to see how much Dish's retention numbers will be affected. I bet a good number of those additions came from there.

 

[harshness]

All of the above seems to be good news

Losing 792,000 subscribers is never good. I can't, for the life of me, figure out how they can lose customers leading up to football season.

Q3 2006 was not a great quarter, so you have to be careful about the percentage figures they're tossing about.

 

[moonman]

Transcript:
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DIRECTV Q3 2007 Earnings Call Transcript - Seeking Alpha