DirecTV Revenue Rises on Higher U.S. Subscription Fees

Earnings Reuters

DirecTV (DTV), the No.1 U.S. satellite TV provider, reported a quarterly profit above analysts' expectations as it earned more from each subscriber in the United States.

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The company's U.S. revenue rose 5.4 percent to $6.51 billion as price increases on programming packages boosted average revenue per user (ARPU) by 4.8 percent.

Cable and satellite TV companies have been trying to raise prices to offset the impact of subscriber losses to web-based entrants such as Netflix Inc.

DirecTV reported net subscriber losses of 28,000 in the country, compared with 139,000 net additions a year earlier, citing promotional discounts by rivals.

Analysts had expected net addition of 66,000 subscribers, according to market research firm StreetAccount.

Dish Network Corp, the second-largest U.S. satellite TV company, reported lower-than-expected quarterly revenue on Tuesday as it lost pay-TV subscribers due to increased competition.

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DirecTV extended its exclusive contract to sell the Sunday Ticket package of National Football League games last month, effectively removing the roadblock to AT&T Inc's proposed $48.5 billion purchase of the company.

Net income attributable to the company fell to $611 million, or $1.21 per share, for the quarter ended Sept. 30 from $699 million, or $1.28 per share, a year earlier.

Excluding items, the company earned $1.33 per share, beating the average analyst estimate by 3 cents, according to Thomson Reuters I/B/E/S.

Revenue rose 6.3 percent to $8.37 billion. Analysts on average expected $8.3 billion.

Revenue from Latin America, which accounts for about a fifth of total revenue, rose 9.5 percent.

DirecTV shares closed at $87.82 on the Nasdaq on Wednesday, up about 27 percent this year.

(Reporting by Abhirup Roy in Bangalore; Editing by Robin Paxton and Don Sebastian)