World Cup Helps Drive DirecTV Q2 Lat Am Gains

Overall, Revenue Up 5%, OPBDA Rises 3%
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DirecTV reported strong second quarter results, driven by big gains in subscribers at its Latin American division – fueled in part by the FIFA World Cup – and continued stability at its U.S. unit.

Overall, revenue increased 5% to $8.1 billion and operating profit before depreciation and amortization (OPBDA) rose 3% to $1.75 billion for DirecTV. Driving those results was a strong subscriber showing in Latin America, where net new customer additions of 543,000 well outpaced the 165,000 additions in the same period last year. In the U.S., DirecTV significantly improved net customer losses in the period to 34,000 compared to a loss of 83,000 in the same period last year. U.S. revenue increased 6% to $6.3 billion and OPBDA rose 6% to $1.75 billion in the period.      

“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 service offerings throughout the Americas,” DirecTV CEO Mike White said in a statement. “DIRECTV Latin America’s second quarter results highlight the tremendous success of our unparalleled FIFA World Cup coverage, while DIRECTV U.S. continues to successfully execute on our overarching goal to balance top line sales with bottom line profitability. Overall, DIRECTV continues to deliver on our strategic imperatives as we prepare for the exciting opportunities that our merger with AT&T will bring to our customers, employees and key stakeholders."

DirecTV agreed to be acquired by AT&T in May in a deal, including debt, that is valued at about $67 billion. That transaction is subject to government approval.

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