DirecTV Surprises in Q3139K Net New Sub Additions Beat Consensus 11/05/2013 1:35 PM Eastern
DirecTV reported strong third quarter results, outpacing analysts’ consensus estimates for net new subscriber growth which helped drive gains in revenue and cash flow.
DirecTV added 139,000 net new subscribers in the U.S. in the third quarter, ahead of the 70,000 predicted by analysts. The gains helped fuel 7.1% revenue growth to $6.2 billion and operating profit before depreciation and amortization rose 12% to $1.4 billion in the U.S.
But results in Latin America, its perennial growth market, were mixed. Latin American operations added about 260,000 net new subscribers, below analyst consensus estimates of 372,000 additions. Revenue growth at 5.4% was slightly below consensus while OPBDA growth of 23% soundly beat expectations.
Overall, revenue was up 6% to $7.9 billion and OPBDA rose 15% to $1.9 billion.
"DirecTV's diversified portfolio of businesses across the
Analysts also seemed pleased with the results.
The product investments and loyalty initiatives of late appear to be gaining traction,” wrote Morgan Stanley media analyst Ben Swinburne in a research note.