This excerpt taken from the DTV 8-K filed Feb 10, 2009.
The DIRECTV Group Q4 Results Cap Record Setting Financial Performance in 2008
EL SEGUNDO, Calif.--(BUSINESS WIRE)--February 10, 2009--The DIRECTV Group, Inc. (NASDAQ:DTV):
The DIRECTV Group, Inc. (NASDAQ:DTV) today reported that fourth quarter 2008 revenues increased 9% to $5.31 billion, operating profit before depreciation and amortization1 increased 11% to $1.22 billion and operating profit declined 6% to $579 million compared to last year’s fourth quarter. The DIRECTV Group reported that fourth quarter net income of $332 million declined 5% and earnings per share increased 7% to $0.32 compared with the same period last year.
“Strong fourth quarter financial results capped the best year ever for DIRECTV in both the United States and Latin America. Company highlights included revenue growth of over 14% to nearly $20 billion, the highest operating profit before depreciation and amortization (OPBDA) margin in our history increasing 130 basis points to 25.5% and most importantly, a 76% increase in free cash flow to about $1.7 billion,” said Chase Carey, president and CEO of The DIRECTV Group, Inc.
“Clearly DIRECTV’s strong brand and message of offering the best television experience in America is resonating with consumers as we saw the best quarterly net subscriber growth in over 3 years at DIRECTV U.S. with 301,000 net new subscribers added in the fourth quarter. Despite the more challenging economic and competitive landscape, we remained sharply focused on attaining higher quality subscribers while driving a 6% increase in gross additions to over 1 million subscribers and maintaining a low churn rate of 1.42%. With these strong fourth quarter results, DIRECTV U.S. ended 2008 with the highest gross additions in 3 years at 3.9 million subscribers and the lowest monthly churn level in 9 years at 1.47%.”
Carey added, “This strong consumer demand combined with ARPU growth of 3.5% contributed to an 8% increase in revenues to over $4.7 billion while OPBDA increased 5% to $1.1 billion in the quarter. Revenue and OPBDA growth were impacted by greater promotional activity for both new and existing customers, as well as an increase in the number of customers signing up for advanced services resulting in higher equipment and installation costs. In terms of the full year 2008, DIRECTV U.S. revenue, OPBDA and OPBDA margin reached record levels and cash flow before interest and taxes of $2.5 billion was more than $1 billion or 73% higher than 2007.
“Results at DIRECTV Latin America (DTVLA) were also strong for the quarter and full year. Net subscriber additions of 160,000 in the fourth quarter boosted DTVLA to its best year ever of 623,000 net subscriber additions. Driven by this strong subscriber growth, revenues increased 15% in the quarter to $572 million and 39% for the full year to $2.4 billion. As in the U.S., DTVLA’s OPBDA margin reached a record high in 2008 increasing over 6 percentage points to 29% while fueling OPBDA growth of 61% and 75% for the quarter and full year, respectively. This significant revenue and OPBDA growth was achieved despite a 4% decline in DTVLA ARPU to $50.09 in the fourth quarter primarily due to unfavorable exchange rates in Brazil,” Carey concluded.