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DirecTV 1st Qtr 2009 Results and Call - Added 460K subs


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115 replies to this topic

#1 OFFLINE   bonscott87

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Posted 07 May 2009 - 07:42 AM

I searched and didn't find a thread yet.

The conference call is this afternoon at 2pm eastern.
http://dtv.client.shareholder.com/

I hope to be able to blog this, so long as I don't have to do any actual "work" today.

DirecTV has released their results found here:
http://investor.dire...eleaseID=382409

Highlights:
* DIRECTV U.S. Net Subscriber Additions Up 67% to 460,000
* DIRECTV U.S. Passes 18 Million Subscriber Mark Driven by 22% Increase in Gross Additions and the Lowest Monthly Churn Rate in 10 Years of 1.33%


...Ads Help To Support This SIte...

#2 OFFLINE   bonscott87

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Posted 07 May 2009 - 07:46 AM

I am floored by the net addition of nearly half a million subs *in one quarter* and *after* Sunday Ticket is over. Amazing.
And churn is at record low numbers, continuing to go down from last quarter.

I think this also indicates that the HR2x rollout isn't as bad now as some make it out (before you flame, I'm talking in general terms across the subscriber base) because now we've had 2 full quarters during which the initial HR2x 2 year commitmnets are up and yet subs are not leaving in droves. Churn is actually *down* and new subs are way up.

Also FIOS and Uverse rollouts continue to not eat into DirecTV but obviously into cable and Dish (which I wouldn't be surprised have another net sub loss).

#3 OFFLINE   lee78221

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Posted 07 May 2009 - 07:53 AM

I am floored by the net addition of nearly half a million subs *in one quarter* and *after* Sunday Ticket is over. Amazing.
And churn is at record low numbers, continuing to go down from last quarter..

+1 Wow, Great Job DirecTV.

Wondering how Dishs 1st Qtr is going to be like.:lol:

#4 ONLINE   harsh

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Posted 07 May 2009 - 08:00 AM

The new subscriber numbers are excellent.

Below numbers are compared to Q1 2008:

SAC is up 21%!

The ARPU (average monthly bill) is over $80/month.

Operating Expenses are up 13%.

Operating Profit is down 35%.

#5 OFFLINE   Steve

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Posted 07 May 2009 - 08:02 AM

I think this also indicates that the HR2x rollout isn't as bad now as some make it out (before you flame, I'm talking in general terms across the subscriber base) because now we've had 2 full quarters during which the initial HR2x 2 year commitmnets are up and yet subs are not leaving in droves. Churn is actually *down* and new subs are way up.

Good observation. Chase will probably mention the % of D* HD households at some point in the call, but I wonder if he'll further break down the % of HD DVR's deployed? I'm guessing the average HD DVR household has 2, so the # of HR's in the field could be in the 10,000,000 to 15,000,000 range by now. /steve
/steve

#6 ONLINE   hdtvfan0001

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Posted 07 May 2009 - 08:07 AM

Amazing numbers, and likely beyond their forecasts.

Wondering out loud - are these alot of defectors from Dish or other service.

When Echostar has their results, it will be interesting to see if they continue their downward spiral in subscribers - not to criticize - but this has been a trend for some time there. Perhaps the market is doing its own "consolidation" to a single DBS provider.
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#7 OFFLINE   Hutchinshouse

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Posted 07 May 2009 - 08:11 AM

I am floored by the net addition of nearly half a million subs *in one quarter* and *after* Sunday Ticket is over. Amazing.
And churn is at record low numbers, continuing to go down from last quarter.

I think this also indicates that the HR2x rollout isn't as bad now as some make it out (before you flame, I'm talking in general terms across the subscriber base) because now we've had 2 full quarters during which the initial HR2x 2 year commitmnets are up and yet subs are not leaving in droves. Churn is actually *down* and new subs are way up.

Also FIOS and Uverse rollouts continue to not eat into DirecTV but obviously into cable and Dish (which I wouldn't be surprised have another net sub loss).


Source?

Verizon added 299,000 FiOS TV subscribers in Q1. Everyone always says FiOS is not offered everywhere. For not being offered everywhere, 300k new subscribers in Q1 sounds pretty impressive to me. Link: http://money.cnn.com...lid_2009_4.html

#8 ONLINE   hdtvfan0001

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Posted 07 May 2009 - 08:15 AM

Source?

Verizon added 299,000 FiOS TV subscribers in Q1. Everyone always says FiOS is not offered everywhere. For not being offered everywhere, 300k new subscribers in Q1 sounds pretty impressive to me. Link: http://money.cnn.com...lid_2009_4.html

I'm not sure where FIOS is getting their new customers....but from firsthand marketing efforts that I saw the past 60 days in 4 NorthEast states...its clear they are targeting cable (especially Comcast) conversions in their ads.

As for the DirecTV growth numbers....I suspect its a market-driven consolidation to some degree, coupled with their aggresive $29.99 "special rate" for new subscribers ad campaign and re-addition of AT&T co-marketing.
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#9 OFFLINE   jpl

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Posted 07 May 2009 - 08:19 AM

I'm not sure where FIOS is getting their new customers....but from firsthand marketing efforts that I saw the past 60 days in 4 NorthEast states...its clear they are targeting cable (especially Comcast) conversions in their ads.

As for the DirecTV growth numbers....I suspect its a market-driven consolidation to some degree, coupled with their aggresive $29.99 "special rate" for new subscribers ad campaign.


I think that's exactly right. Their entire ad campaign took a page from the Apple Mac ads where you have one guy representing FiOS, and the other representing Cable. It's clear that Verizon's aim is primarily at existing cable customers.

As for the DirecTV growth numbers, all I can say is 'wow!' That really is impressive. I figured that they'd have a good quarter, but that really is astounding.

Edit - as for why the accelerated growth (they did great the prior two quarters, but this blows that out of the water), I'd have to guess that it can partly be attributed to their teaming up with AT&T. Which makes me really curious as to how Dish did this past quarter.

#10 OFFLINE   Stuart Sweet

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Posted 07 May 2009 - 08:20 AM

The new subscriber numbers are excellent.

Below numbers are compared to Q1 2008:

SAC is up 21%!

The ARPU (average monthly bill) is over $80/month.

Operating Expenses are up 13%.

Operating Profit is down 35%.


Numbers like that are best taken in context. I'm sure there are many, many large corporations in the US that would salivate over the ability to report a profit at all. In the meantime, DIRECTV has added something like a million subscribers in the last 12 months. When that is compared to the number of new customers who've walked into a GM dealership for the first time in the last 12 months... I'm just saying. I wonder if GM is still glad it no longer has an affiliation with DIRECTV (through one-time parent Hughes).
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#11 OFFLINE   jpl

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Posted 07 May 2009 - 08:31 AM

Numbers like that are best taken in context. I'm sure there are many, many large corporations in the US that would salivate over the ability to report a profit at all. In the meantime, DIRECTV has added something like a million subscribers in the last 12 months. When that is compared to the number of new customers who've walked into a GM dealership for the first time in the last 12 months... I'm just saying. I wonder if GM is still glad it no longer has an affiliation with DIRECTV (through one-time parent Hughes).


You ain't kidding - not to get OT, but my wife and I were recently shopping for a new car. ALL dealerships are now ghosttowns - you can't walk 5 feet from your car before at least one salesman descends on you. But nowhere did I see the level of desperation that was palpable at the local Saturn dealership. We test drove the Outlook (one of their cross-overs), and the one that we were looking at was a 2008 left-over. Yep, they still had a new 2008 on the lot, just a few months before the 2010s will be hitting the lots.

These numbers, by any measure, are just darn impressive on DirecTV's part, and I give them major kudos for it.

#12 OFFLINE   lee78221

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Posted 07 May 2009 - 08:46 AM

I wonder if GM is still glad it no longer has an affiliation with DIRECTV (through one-time parent Hughes).

The same could be said for Rupert Murdoch. What's that he call DirecTV again? A Turd bird.:lol:

#13 OFFLINE   Piratefan98

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Posted 07 May 2009 - 08:49 AM

Hard to argue with results .... this is a VERY successful company. I'm glad to be a subscriber (but I'll still be bitching about new HD, PBS, bugs in the new Scoreguide, etc.) :lol:

Truly, they are the best provider on earth, but "best" doesn't mean perfect. Always room for improvement.

Jeff

#14 OFFLINE   DCDeac

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Posted 07 May 2009 - 09:14 AM

Well, here's how they got me. Had Dish a while back, loved it. Switched to Comcast when they offered a crazy deal, hated it.

Decided to switch again, and the perfect storm of changes occurred for me to choose DirecTV.

1) Prices came down. Getting started with HD DVR's on DirecTV used to be WAY more expensive than with Dish. Now it's about the same.

2) Connectivity Issues. SWM is a big help for prewired houses. Almost impossible to do before, now not a big deal.

3) Prices came down. Deals are for 12 months, not 6. Long term cost dropped enough that even if Comcast offered a deal, it wouldn't be significant enough to prevent getting DirecTV.

4) HD quality improved, programming choices continue to be great, especially sports-wise.

5) Did I mention prices came down? (Oh, and no FIOS in my area. Duh.)

#15 OFFLINE   bonscott87

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Posted 07 May 2009 - 09:14 AM

Source?

Verizon added 299,000 FiOS TV subscribers in Q1. Everyone always says FiOS is not offered everywhere. For not being offered everywhere, 300k new subscribers in Q1 sounds pretty impressive to me. Link: http://money.cnn.com...lid_2009_4.html


I think you mistake what I said.
As with 4th quarter last year, DirecTV, FIOS & AT&T all grew by pretty good numbers. Dish and cable all lost subs.

Thus, FIOS and AT&T are eating away at Dish and cable subs a lot more then DirecTV. At the least DirecTV is replacing them with even more newbies coming from Dish and cable.

My point is that FIOS and AT&T's rapid rise is *not* at the expense of DirecTV but everyone else. DirecTV has remained strong despite the strong competition.

#16 OFFLINE   Hutchinshouse

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Posted 07 May 2009 - 09:30 AM

I think you mistake what I said.
As with 4th quarter last year, DirecTV, FIOS & AT&T all grew by pretty good numbers. Dish and cable all lost subs.

Thus, FIOS and AT&T are eating away at Dish and cable subs a lot more then DirecTV. At the least DirecTV is replacing them with even more newbies coming from Dish and cable.

My point is that FIOS and AT&T's rapid rise is *not* at the expense of DirecTV but everyone else. DirecTV has remained strong despite the strong competition.


I hear ya. My point was DIRECTV's numbers would have been even higher if FiOS was out of the picture. So, basically FiOS did "eat" at DIRECTV's numbers. And I'm sure likewise with FiOS. I'm sure people dropped FiOS for DIRECTV. Competition is great!

#17 OFFLINE   Newshawk

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Posted 07 May 2009 - 09:43 AM

Hard to argue with results .... this is a VERY successful company. I'm glad to be a subscriber (but I'll still be bitching about new HD, PBS, bugs in the new Scoreguide, etc.) :lol:

Truly, they are the best provider on earth, but "best" doesn't mean perfect. Always room for improvement.

Jeff


That's OK, Jeff. You're part of the family, and there's always some contention in ANY family-but we're still family! :D

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The above comments are my own because I don't know if anyone would care about my opinions anymore.


#18 OFFLINE   ansky

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Posted 07 May 2009 - 09:45 AM

Churn just increased. I canceled my service on Monday :D

#19 OFFLINE   ansky

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Posted 07 May 2009 - 09:47 AM

You ain't kidding - not to get OT, but my wife and I were recently shopping for a new car. ALL dealerships are now ghosttowns - you can't walk 5 feet from your car before at least one salesman descends on you. But nowhere did I see the level of desperation that was palpable at the local Saturn dealership. We test drove the Outlook (one of their cross-overs), and the one that we were looking at was a 2008 left-over. Yep, they still had a new 2008 on the lot, just a few months before the 2010s will be hitting the lots.

These numbers, by any measure, are just darn impressive on DirecTV's part, and I give them major kudos for it.


It's actually not that surprising that D* would increase subs in this bad economy. People are choosing to stay home more to save money so they need more to keep them occupied at home. I saw a story recently that companies like Netflix are adding large numbers of subs too.

#20 OFFLINE   MIAMI1683

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Posted 07 May 2009 - 09:51 AM

First the numbers are very good. Congrats to the management at D* for having a vision and sticking to it. This is a very good thing.

FYI...Not ALL car dealerships are ghostowns. Just the poorly run ones and most domestic brands!
Sometimes it just is what it is :nono2:




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