DirecTV on Tuesday said strong subscriber growth and price increases in its U.S. business during the first quarter helped to offset weakness in Latin America, as the satellite-television provider said it expects its deal to be bought by AT&T Inc. to close in the current quarter.
Overall, profit and revenue came in below Wall Street expectations for the quarter. Shares of DirecTV, up 13% in the last year, edged down 0.3% in morning trading to $90.15.
Continue Reading Below
The $49 billion deal between AT&T and DirecTV is expected to be yet another major transformation for the communications industry. The combination is expected to give AT&T a differentiated offering when trying to win wireless customers or sell large packages of telecom, Internet and video services.
In the most recent period, DirecTV's U.S. division added a net 60,000 new customers, compared with 12,000 additions a year earlier. Its churn rate was 1.37%, down from 1.45% a year earlier and its lowest first-quarter rate in six years.
U.S. revenue grew 6.1% to $6.46 billion. Average monthly revenue per subscriber, meanwhile, rose to $105.62 from $100.16 a year earlier due in part to price increases on programming packages and regional sports networks.
Overall, the company posted quarterly earnings of $730 million, or $1.44 a share, up from $561 million, or $1.09 a share, a year earlier.
Revenue grew 3.7% to $8.14 billion.
Analysts polled by Thomson Reuters had projected earnings of $1.53 a share and revenue of $8.15 billion.
In its Latin America division, subscriber growth slowed to 219,000 net additions in the latest quarter from 361,000 a year earlier.
Churn rate grew to 2.15% from 1.85%, while revenue fell 5% to $1.64 billion. Its average monthly revenue per subscriber fell to $43.32 from $48.83 a year earlier.
DirecTV said its results in Latin America were weighed by foreign exchange headwinds.