This excerpt taken from the DTV 8-K filed Feb 10, 2009.
Full Year Review
In 2008, DTVLA’s gross subscriber additions increased 29% to 1,393,000 primarily due to strong demand in Brazil, Argentina, and Venezuela. Average monthly churn in 2008 increased to 1.78% mostly due to two downward subscriber adjustments totaling 78,000 subscribers in Sky Brazil as a result of the inconsistent application of churn policies in previous periods and the completion of the Sky Brazil and DIRECTV Brazil business integration. Excluding these adjustments, average monthly churn would have increased to 1.58% compared to 1.38% in 2007 due to increased competition, faster growth, DTVLA’s prepaid business and a more challenging macroeconomic environment.
Revenues for DIRECTV Latin America increased 39% to $2.38 billion in 2008 principally due to strong subscriber and ARPU growth. ARPU increased 13.9% to $55.07 primarily due to strong growth in the region – particularly in Argentina, Venezuela and Brazil – as well as a favorable exchange rate in Brazil for the first three quarters. DTVLA’s 2008 OPBDA of $690 million increased 75% over last year’s result and operating profit more than doubled to $426 million primarily due to the gross profit generated from the higher revenues. These improvements were partially offset by greater subscriber acquisition costs mostly related to the increase in gross additions, as well as higher general and administrative expenses primarily due to currency related transaction fees in Venezuela.
This excerpt taken from the DTV 8-K filed Feb 13, 2008.
Full Year Review
In the full year of 2007, DIRECTV Latin America net subscriber additions of 588,000 more than doubled compared to 2006 primarily due to subscriber growth in Brazil, Argentina, Venezuela and Colombia. Also contributing to the net subscriber increase was a decline in aggregate churn to 1.38% mostly due to improved performance in Venezuela and Brazil.
Revenues for DIRECTV Latin America in 2007 increased 70% to $1.72 billion principally due to the Sky Brazil merger and the impact of continued subscriber and ARPU growth in Brazil and PanAmericana. DIRECTV Latin America’s 2007 operating profit before depreciation and amortization of $394 million increased 61% compared to last year’s results primarily due to the gross profit generated from the higher revenues throughout the region as well as benefits from the Sky Brazil merger. Also impacting the comparison were two non-cash pre-tax gains totaling $118 million recorded in 2006 for the completion of DIRECTV Latin America’s Sky Mexico transaction and the DIRECTV Brazil and Sky Brazil merger. DIRECTV Latin America’s operating profit doubled to $159 million as the higher operating profit before depreciation and amortization was partially offset by higher depreciation and amortization expense primarily related to the tangible and intangible assets recorded as part of the Sky Brazil and Darlene transactions.
This excerpt taken from the DTV 8-K filed Feb 7, 2007.
Full Year Review
In 2006, DIRECTV Latin Americas net subscriber additions of 249,000 were 67% higher than in 2005 primarily due to strong growth throughout PanAmericana and a decline in aggregate churn from 1.67% to 1.46% in the current year. Revenues for DIRECTV Latin America increased 37% to $1.01 billion during the year primarily due to the consolidation of Sky Brazils operations and the subscriber growth mentioned above, partially offset by lower revenue at DIRECTV Mexico due to the sale of its subscribers in 2005.
The increase in DIRECTV Latin Americas 2006 operating profit before depreciation and amortization to $244 million and operating profit to $79 million was primarily attributable to several non-cash gains at DIRECTV Latin America including $61 million recorded in the third quarter of 2006 at the completion of the Sky Brazil merger and $57 million recorded in the first quarter of 2006 related to the Sky Mexico transaction. Also contributing to the increase was the consolidation of the Sky Brazil business after its merger and the gross profit generated by the higher revenues in PanAmericana. These changes were partially offset by a $70 million non-cash gain in 2005 related to the Sky Mexico transaction.