This excerpt taken from the DTV 8-K filed May 7, 2009.
DIRECTV Latin America Revenues Up 10% to $598 Million
EL SEGUNDO, Calif.--(BUSINESS WIRE)--May 7, 2009--The DIRECTV Group, Inc. (NASDAQ:DTV) today reported that first quarter 2009 revenues increased 7% to $4.90 billion, operating profit before depreciation and amortization1 (OPBDA) declined 8% to $1.09 billion and operating profit decreased 35% to $424 million compared to last year’s first quarter. The DIRECTV Group reported that first quarter net income attributable to The DIRECTV Group declined 46% to $201 million and earnings per share fell 38% to $0.20 compared with the same period last year.
“The growing momentum that we saw at the end of last year has continued into 2009 reflecting DIRECTV’s brand strength and unparalleled service,” said Chase Carey, president and CEO of The DIRECTV Group, Inc. “Net subscriber additions of 460,000 in the U.S. were the highest in 4 years and were 67% greater than the prior year. DIRECTV’s competitive advantages, which include industry leading HD, interactive, sports and DVR services, were the driving force behind the 22% increase in gross additions to 1.18 million subscribers and the ten-year low monthly churn rate of 1.33%. We’re also pleased that the overall credit quality of these new subscribers remains at our high standards and they continue to have a rich appetite for HD and DVR services.
“We also did a good job managing costs in the quarter particularly in the areas of programming, SAC and upgrade and retention marketing,” Carey said. “However, increased economic and competitive pressures limited our ARPU growth to 0.8% due to more promotional offers given to new and existing customers, as well as lower premium movie, pay-per-view and advertising revenues in the quarter. Although the higher gross additions had an impact on OPBDA and cash flow in the quarter, we believe that these new subscribers in aggregate are highly profitable and will increase cash flows over the long term.”
Carey added, “DIRECTV Latin America also posted solid subscriber results in a slower economic environment as higher gross subscribers drove net additions of 148,000 in the quarter. Monthly churn of 1.86% was higher than the prior year’s quarter primarily due to the increasing popularity of our pre-paid offers in Brazil and Venezuela where our net acquisition cost remains less than $100 per subscriber. With the strong subscriber growth, revenues in the quarter grew 10% to $598 million overcoming a 16% decline in Sky Brazil’s ARPU due to the weaker currency. DIRECTV Latin America’s bottom-line results were also solid as operating profit before depreciation and amortization grew 38% when excluding a $72 million charge related to the exchange of Venezuelan currency to U.S. dollars.”