For the quarter ended September 30, the company saw earnings rise 30.1% to $479 million, or 55 cents per diluted share, compared with earnings of $366 million, or 37 cents per diluted share, in the same period a year ago. Earnings from continuing operations were in line with analyst estimates of 55 cents.
Revenue rose 10.2% to $6.03 billion from $5.47 billion during the quarter due to strong subscriber growth in the U.S. market as well as Latin America. The company ended the quarter with a total of 18.9 million U.S. subscribers, up 2.7% from 18.4 million subscribers at the end of the third quarter in 2009.
Revenue from its Latin America segment was up 22% to $930 million from $761 million due to strong subscriber growth and a 27% increase in third quarter net additions to 206,000 from 162,000. It added 525 million subscribers in Latin America in the third quarter, bringing the cumulative number of subscribers in the region to 5.4 million. DirecTV owns 74% of Sky Brazil, 41% of Sky Mexico and 100% of PanAmericana."Driven by our industry leading HD, DVR and interactive services, gross and net subscriber additions increased in both our U.S. and Latin American businesses for the first time in 2½ years and as a result, we widened our leading position as the world's largest provider of pay TV services with over 27 million subscribers," president and CEO Mike White said. The average monthly revenue per subscriber (ARPU) in the U.S. was up 4.3% to $88.98 largely due to an increase in the programming package price, higher HD and DVR service fees and growth in advertising sales. ARPU in Latin American dropped 2.7% in the quarter due to currency devaluations, mainly in Venezuela. DirecTV also saw a $64 million gain generated by DirecTV's sports networks, which was acquired as a part of a Liberty Media (LCAPA) transaction in November 2009. For the first nine months of the year, earnings rose 62.2% to $1.58 billion, or $1.75 a share, compared with earnings of $974 million, or 97 cents a share, in the same period a year ago. Earnings per share gains were driven by the higher net income and a lower average share count resulting from stock repurchases made over the last year and the 2009 Liberty transaction. The company issued $3 billion in senior notes, repaid the remaining secured debt of $1.2 billion and repurchased $1.37 billion of its stock, bringing total repurchases to $3.6 billion year-to-date. Revenue rose 12.2% to $17.48 billion from $15.58 billion due to strong subscriber and ARPU growth as well as $178 million of net revenue generated by its sports networks. -- Written by Theresa McCabe in Boston.
>To contact the writer of this article, click here: Theresa McCabe. >To follow the writer on Twitter, go to @TheresaMcCabe. >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV