DIRECTV (NASDAQ:DTV) today reported an increase in third quarter 2012 revenues of 8% to $7.42 billion, operating profit before depreciation and amortization 1 (OPBDA) of 6% to $1.69 billion and operating profit of 4% to $1.07 billion compared to last year's third quarter. DIRECTV reported an increase in third quarter net income of 9% to $565 million and diluted earnings per share of 29% to $0.90 compared with the same period last year.
“DIRECTV delivered another strong quarter highlighted by solid revenue, earnings and cash flow growth,” 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 services throughout the Americas." White added, "DIRECTV U.S.' third quarter results reflect successful execution of our long-term strategy to strike a more optimal balance between our top and bottom lines while DIRECTV Latin America continues to profitably increase market share in the rapidly growing Latin America pay-TV market by offering best-in-class service to both the advanced and middle market segments.”
DIRECTV's Operational Review
Third Quarter ReviewDIRECTV's third quarter revenues of $7.42 billion increased 8% principally due to subscriber growth at DIRECTV Latin America (DTVLA) and DIRECTV U.S., as well as higher ARPU at DIRECTV U.S. Operating profit before depreciation and amortization (OPBDA) increased 6% to $1.69 billion and operating profit increased 4% to $1.07 billion in the quarter compared with the same period last year. OPBDA and operating profit margin declined slightly in the quarter primarily due to higher customer service and general and administrative expenses at DTVLA. Also in the quarter, DIRECTV U.S. OPBDA and operating profit margins were higher as lower subscriber acquisition and general and administrative expenses, as well as relatively unchanged upgrade and retention costs were partially offset by increased programming costs including an extra week of NFL Sunday Ticket expense.
|DIRECTV Consolidated Dollars in Millions except Earnings per Common Share||Three Months Ended September 30,||Nine Months Ended September 30,|
|Operating Profit Before Depreciation and Amortization (1)||1,686||1,584||5,598||5,196|
|OPBDA Margin (1)||22.7||%||23.1||%||25.8||%||26.3||%|
|Operating Profit Margin||14.4||%||15.0||%||17.5||%||17.3||%|
|Net Income Attributable to DIRECTV||565||516||2,007||1,891|
|Diluted Earnings Per Common Share||0.90||0.70||3.06||2.47|
|Capital Expenditures and Cash Flow|
|Cash paid for property and equipment||178||188||546||464|
|Cash paid for subscriber leased equipment - subscriber acquisitions||379||470||1,081||1,155|
|Cash paid for subscriber leased equipment - upgrade and retention||186||206||533||541|
|Cash paid for satellites||47||108||231||156|
|Cash Flow Before Interest and Taxes (2)||957||788||3,293||2,685|
|Free Cash Flow (3)||319||235||1,742||1,295|
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