DIRECTV Latin America
DIRECTV Latin America owns approximately 93% of Sky Brasil, 41% of Sky Mexico and 100% of PanAmericana, which covers most of the remaining countries in the region. Sky Mexico, whose results are accounted for as an equity method investment and therefore are not consolidated by DTVLA, had approximately 4.88 million subscribers as of September 30, 2012, bringing the total subscribers in the region to 14.55 million.
|DIRECTV Latin America||Three Months Ended September 30,||Nine Months Ended September 30,|
|Dollars in Millions except ARPU||2012||2011||2012||2011|
|Average Monthly Revenue per Subscriber (ARPU) ($)||55.97||64.63||57.83||63.58|
|Operating Profit Before Depreciation and Amortization (1)||455||434||1,368||1,241|
|OPBDA Margin (1)||28.9||%||32.0||%||29.9||%||33.3||%|
|Operating Profit Margin||14.0||%||17.4||%||15.2||%||18.7||%|
|Capital Expenditures and Cash Flow|
|Cash paid for property and equipment||40||28||167||54|
|Cash paid for subscriber leased equipment - subscriber acquisitions||195||248||619||609|
|Cash paid for subscriber leased equipment - upgrade and retention||107||115||324||305|
|Cash paid for satellites||22||74||86||74|
|Cash Flow Before Interest and Taxes (2)||81||32||238||329|
|Free Cash Flow (3)||15||(23||)||(5||)||124|
|Subscriber Data (4) (in 000's except Churn)|
|Gross Subscriber Additions||1,081||957||3,234||2,545|
|Average Monthly Total Subscriber Churn||1.91||%||1.83||%||1.84||%||1.83||%|
|Average Monthly Post-paid Subscriber Churn||1.54||%||1.39||%||1.51||%||1.42||%|
|Net Subscriber Additions||543||574||1,781||1,473|
Third Quarter Review
In the third quarter, DTVLA revenues increased 16% to $1.58 billion compared to the same period last year principally due to strong subscriber growth partially offset by a 13.4% decline in ARPU. Net additions of 543,000 were modestly lower than the year ago period as increased gross additions were more than offset by higher average monthly churn on the larger subscriber base. Gross additions increased 13% to a third quarter record of 1.08 million principally due to greater middle market demand across the region, most notably in Argentina, Colombia and Brazil. Also in the quarter, average monthly post-paid churn increased to 1.54% and total average monthly churn increased to 1.91% primarily driven by higher churn in Brazil mostly related to the increased penetration of middle market subscribers. The decline in ARPU to $55.97 was due to unfavorable exchange rates, mainly in Brazil and Argentina. Excluding the impact of exchange rates, ARPU increased slightly in the quarter principally due to price increases and more upgrades including advanced services, partially offset by the higher penetration of lower ARPU middle market subscribers.
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