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Guest Message by DevFuse

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The DIRECTV Group Announces Second Quarter 2009 Results


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127 replies to this topic

#1 OFFLINE   STEVED21

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Posted 06 August 2009 - 06:01 AM

The DIRECTV Group Becomes the World's Largest Pay-TV Provider with Over 24.2 Million Subscribers

DIRECTV U.S. Net Additions Increase 74% to 224,000 Driven by a 17% Increase in Gross Additions and a Monthly Churn Rate of 1.51%
DIRECTV Latin America Adds 128,000 Net Subscribers
The DIRECTV Group Increases Revenues 9% to $5.2 Billion and Free Cash Flow by 47% to $550 Million

DIRECTV U.S. Revenues Grow 8% to $4.5 Billion
DIRECTV Latin America Revenues Up 11% to $680 Million

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

#2 OFFLINE   bonscott87

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Posted 06 August 2009 - 06:08 AM

Link to the webcast at 11am: http://investor.dire...footernavtype=5

I should be able to blog this, I've blocked it out on my calendar, just need to keep people out of my cube! :D

#3 OFFLINE   Stuart Sweet

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Posted 06 August 2009 - 07:05 AM

Thanks for posting this guys...
Opinions expressed by me are my own and do not necessarily reflect
those of DBSTalk.com, DIRECTV, DISH, The Signal Group, or any other company.

#4 OFFLINE   Stuart Sweet

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Posted 06 August 2009 - 07:06 AM

Full Press Release in HTML Format
Full Press Release in PDF Format
Opinions expressed by me are my own and do not necessarily reflect
those of DBSTalk.com, DIRECTV, DISH, The Signal Group, or any other company.

#5 OFFLINE   ATARI

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Posted 06 August 2009 - 07:27 AM

The DIRECTV Group Becomes the World's Largest Pay-TV Provider with Over 24.2 Million Subscribers

DIRECTV U.S. Net Additions Increase 74% to 224,000 Driven by a 17% Increase in Gross Additions and a Monthly Churn Rate of 1.51%
DIRECTV Latin America Adds 128,000 Net Subscribers
The DIRECTV Group Increases Revenues 9% to $5.2 Billion and Free Cash Flow by 47% to $550 Million

DIRECTV U.S. Revenues Grow 8% to $4.5 Billion
DIRECTV Latin America Revenues Up 11% to $680 Million


That's some impressive numbers!

#6 OFFLINE   harsh

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Posted 06 August 2009 - 08:00 AM

The churn may be a near term record high.

Be careful when comparing to previous quarters that you distinguish between U.S. and combined (with Latin American) operations where appropriate.

#7 OFFLINE   hdtvfan0001

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Posted 06 August 2009 - 08:31 AM

The churn may be a near term record high.

....perhaps as seen from a Dish "see if we can use this to try to make Dish look better" perspective...

But the results yet incredibly solid in a bad economy from any kind of an objective view.

I bet the analysts rate all the numbers "above" expectations.

Compared to the competition....its negligible.

Its equally amazing that they continue to add net subscribers in this economy...likely at the expense of both Dish and cable. We'll have to see when those numbers come out to determine any correlations.

Update from Marketwatch:

DirecTV reported third-quarter earnings of $370.2 million, or 30 cents a share, up from a year-ago profit of $94.6 million, or 7 cents a share. Revenue rose in the latest three months to $3.67 billion from $3.23 billion in the same period a year earlier.

The average estimate of analysts polled by Thomson First Call was for a profit of 27 cents a share in the September quarter on revenue of $3.61 billion. Shares were up 2% at $22.27.

This is where some folks might be tempted to say "I told you so"...but not me. :D

Edited by hdtvfan0001, 06 August 2009 - 08:43 AM.

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#8 OFFLINE   bonscott87

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Posted 06 August 2009 - 08:40 AM

Key U.S numbers:

* 224,000 sub additions
* 18.31 total subs (increase of over 1 million since last year)
* 1.51% churn (up a bit from 1st qtr but still very low)
* SAC at a 6 qtr low of $694 ("A highlight in the quarter was cash SAC of $694 at DIRECTV U.S., reflecting the lowest level in six quarters despite significantly greater sales of HD and DVR services to new customers.")

All in all an excellent 2nd quarter, especially considering not only the economy but also that the 2nd qtr is usually the slowest of the year.

20 minutes to live.

#9 OFFLINE   DodgerKing

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Posted 06 August 2009 - 08:59 AM

The DIRECTV Group Becomes the World's Largest Pay-TV Provider with Over 24.2 Million Subscribers


This is the part that caught my eye. Is this really the case?

#10 OFFLINE   bonscott87

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Posted 06 August 2009 - 08:59 AM

This is the part that caught my eye. Is this really the case?


Yes when you count Latin America and Mexico.

#11 OFFLINE   bonscott87

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Posted 06 August 2009 - 09:01 AM

And we are up and running!

Remember this will mostly be financial numbers, not when X channel will launch.

Will be interesting if Tivo is ignored again.

I'll keep my personal comments in brackets.

#12 OFFLINE   bonscott87

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Posted 06 August 2009 - 09:06 AM

Will continue to work on long term growth driven by high quality subscribers.

Going over the results as posted above.
Strong sub grown and good cost management.

Best 2nd qtr net add number in 4 years.

Benefited from first full quarter of AT&T bundling.
Modest growth due to digital transition, but not as much in 1st quarter.

Credit quality of new subs and uptake of advanced product.

Believe the 2nd quarter was a better balance of sub growth and churn then was the first quarter.

#13 OFFLINE   bonscott87

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Posted 06 August 2009 - 09:07 AM

60% of new subs take up HD DVR boxes.
SAC is lower due to lower hardware costs and being able to reuse used boxes.

#14 OFFLINE   bonscott87

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Posted 06 August 2009 - 09:13 AM

1st quarter were a bit high in sub growth and costs. 2nd quarter much more balanced.

Comcast announced over 200,000 losses this quarter so it's nice to see DirecTV still growing.
Telco channel contributed about 25% of gross adds.

1.51% churn was up a bit from last year but in line with what was expected.
Mainly due to tightened up free offers and retention offers. Balance between company profit and losing a customer. This balance can change from month to month or even week to week.

ARPU growth 1.71% which is down. Lower uptake with premiums.

Really did well controlling costs especially with SAC and retention.

Want slower sub growth along with this controlling costs for a better balance.

50% more advanced HD DVR boxes over last year but costs are actually down.

#15 OFFLINE   bonscott87

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Posted 06 August 2009 - 09:15 AM

Programming costs going up at a slower rate then expected due to lower uptake on premiums and favorable contracts.

Higher overall service levels so far this year in terms of taking calls quicker, lower call abondonment and so forth. Want to continue this as improving support is a top priority.

#16 OFFLINE   bonscott87

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Posted 06 August 2009 - 09:16 AM

3rd quarter, expecting net adds to be about the same as last year.
Looking for higher gross adds and a bit higher churn due to tightening of retention and offers to current subs.

#17 OFFLINE   bonscott87

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Posted 06 August 2009 - 09:18 AM

ARPU growth will be slower mainly due to seeing people cut back on premium channels along with events and PPV. Mostly due to the economy but also due to less "must see" content.

#18 OFFLINE   bonscott87

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Posted 06 August 2009 - 09:20 AM

Latin America info now.

#19 OFFLINE   harsh

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Posted 06 August 2009 - 09:24 AM

This is the part that caught my eye. Is this really the case?

As I said above, be careful which numbers are U.S. only and which are consolidated with DIRECTV Latin America. The number you cite is the consolidated number.

#20 OFFLINE   BennyGregg

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Posted 06 August 2009 - 09:24 AM

I think that the decreasing cost of HD television sets helps to drive the increase in satellite TV subscriptions; as more and more have HD tv's, they want HD content. I just changed from cable to DirecTV. The number of HD channels I could get on cable was much less than I can get from DirecTV. The DirecTV cost is a bit more, but with much greater channel choice. So, I changed from 30 years or so with cable to DirecTV last month. Also, I chose DirecTV partly because I thought the Dish web site makes it too hard to calculate what your real subscriber costs will be; DirecTV's site was just more forthcoming and easier to navigate (although it tends to hide costs and conditions more than it should).




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