DirecTV Net Subscriber Additions Cap Record-Setting Year

[Satellite TODAY Insider 02-24-11] DirecTV‘s fourth quarter 2010 revenues increased 11 percent to $6.62 billion compared to the same period in 2009, which helped the company generate net profits of $618 million, rebounding from $32 million in losses the company reported in the 2009 fourth quarter, the U.S. pay-TV broadcaster announced Feb. 23.
    DirectTV CEO Mike White said the company’s strong fourth-quarter performance was driven by the consolidated addition of 667,000 new subscribers – its highest gain in a decade – as DirecTV closed 2010 with 1.9 million new customers. "We exit 2010 with good momentum and look to build on that in 2011 with a strategy designed to maintain our industry-leading revenue and earnings growth," White said in a conference call.
    DirecTV Latin America (DTLA), which prioritized the expansion of HD and DVR services and the introduction of new products to the middle-market segments in 2010, saw fourth quarter revenues increase 23 percent to $1.03 billion on 378,000 net subscriber additions, an increase of 49 percent compared to the same period last year.
    DTLA’s performance was driven by middle-market segment gains in Brazil and increased demand for HD, DVR and pre-paid services in the region. The regional division’s only setbacks included average monthly churn remaining flat at 1.55 percent and an ARPU decline of 2.5 percent due to currency devaluations, particularly in Venezuela. However, DTLA ended 2010 with $3.6 billion in revenues, a 25 percent jump from its 2009 full-year fiscal period, as well as a 76 percent full-year increase in net subscriber additions and a 1.5 percent increase in ARPU.
    In a statement, DTLA CEO Bruce Churchill said the Latin American broadcaster reaped benefits from the 2010 FIFA World Cup and targeted customer promotions aimed at the middle-market segments which drove strong growth across the region, particularly in Brazil, Argentina, Colombia, Ecuador and Chile.
    Our service "price increases, favorable exchange rates in Brazil and higher sales of advanced products throughout the region helped create a modest gain in 2010 ARPU. … Other areas of growth, however, were partially offset by increased subscriber acquisition costs related to our higher gross additions and higher depreciation expense mostly due to the increase in set-top boxes deployed related to the higher gross subscriber additions as well as increased demand for advanced equipment compared to last year," Churchill said.

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DirecTV Net Subscriber Additions Cap Record-Setting Year

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