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Guest Message by DevFuse

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DirecTV 2Q profit rises 33 pct as prices rise


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15 replies to this topic

#1 OFFLINE   wilbur_the_goose

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Posted 05 August 2010 - 06:25 AM

Kudos to Mr. White and all DirecTV employees: http://investor.dire...eleaseID=496757

Highlights:

DIRECTV Adds 515,000 Net New Subscribers

•Increase driven by all-time record performance of 415,000 net new subscribers at DIRECTV Latin America and 100,000 net additions at DIRECTV U.S.
•DIRECTV extends global leadership position by topping 26 million customers in the United States, Latin America and Mexico
DIRECTV Grows Revenues 12% to $5.85 Billion and Net Income 33% to $543 Million.

•Revenues boosted by strong ARPU growth of 5.7% at DIRECTV U.S. and 3.1% at DIRECTV Latin America
•Net Income fueled by operating profit before depreciation and amortization margin improvement of 7.4 percentage points at DIRECTV Latin America and 0.9 percentage points at DIRECTV U.S.
DIRECTV Free Cash Flow Increases 40% to $1.41 Billion Year-to-Date
DIRECTV Repurchases $1.72 Billion of Company Stock in the Second Quarter; Board Approves an Additional $2.0 Billion Stock Repurchase Program

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

#2 OFFLINE   MysteryMan

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Posted 05 August 2010 - 06:30 AM

Nice

#3 OFFLINE   ATARI

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Posted 05 August 2010 - 07:15 AM

Better quarter than I expected.

#4 OFFLINE   harsh

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Posted 05 August 2010 - 07:43 AM

The quarter looks great until you consider that the lion's share of the good news came from DIRECTV LA.

On the DIRECTV US side:

SAC continues to drop ($595, excellent news until WHDS hits).
ARPU is up 5% over last year to $87.90.
Churn is flat versus last year.
Second quarter in a row of minimal net adds.
846,000 customers parted company.

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#5 OFFLINE   sigma1914

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Posted 05 August 2010 - 07:52 AM

The quarter looks great until you consider that the lion's share of the good news came from DIRECTV LA.

On the DIRECTV US side:

SAC continues to drop ($595, excellent news until WHDS hits).
ARPU is up 5% over last year to $87.90.
Churn is flat versus last year.
Second quarter in a row of minimal net adds.
846,000 customers parted company.


Yet, they had "100,000 net additions at DIRECTV U.S."

Who cares if the success is from mostly LA? It's still success!
If you stop responding to them or put them on ignore, then eventually they'll go away.

#6 OFFLINE   harsh

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Posted 05 August 2010 - 08:20 AM

Who cares if the success is from mostly LA? It's still success!

Unless you subscribe to DIRECTV LA, what happens there doesn't reflect on DIRECTV as far as you're concerned. If the best ROI comes from investing in DIRECTV LA, where do you suppose they are going to spend their money?

What you're suggesting is something like recommending that everyone should buy GM stock because high end Buick sedans are very popular in China.

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#7 OFFLINE   jacmyoung

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Posted 05 August 2010 - 08:52 AM

...What you're suggesting is something like recommending that everyone should buy GM stock because high end Buick sedans are very popular in China.


If you are an investor, why not consider that?

But we are consumers, so you are correct just because Buick is popular in China does not offer us much relief.

#8 OFFLINE   Stuart Sweet

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Posted 05 August 2010 - 09:02 AM

Seems to me the nattering nabobs of negativity have already planted a flag in this thread. I'm not an investor, so a change in profits doesn't help me much. But I'm not sure why the distribution of those profit sources is such a bad thing. If most of the profits came from US operations, you all would be complaining that the fat cats were growing fatter on your money.

I congratulate DIRECTV for sound planning and fiscal responsibility.
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#9 OFFLINE   DodgerKing

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Posted 05 August 2010 - 09:39 AM

Unless you subscribe to DIRECTV LA, what happens there doesn't reflect on DIRECTV as far as you're concerned. If the best ROI comes from investing in DIRECTV LA, where do you suppose they are going to spend their money?

What you're suggesting is something like recommending that everyone should buy GM stock because high end Buick sedans are very popular in China.

When the 4th quarter results come in that show Direct doing even better than the 2nd quarter, and Dish showing a net loss (like they did last year), are you going to post anything positive about Direct?

I predict you will still make a negative post about Direct, make an excuse for Dish, and ignore this post in which I will predict Direct will gain over 200k during quarter 4 and Dish will actually have a net loss.

#10 OFFLINE   sigma1914

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Posted 05 August 2010 - 10:31 AM

Unless you subscribe to DIRECTV LA, what happens there doesn't reflect on DIRECTV as far as you're concerned...


Unless you subscribe to Directv in the U.S. or L.A., which you don't, then why care?
If you stop responding to them or put them on ignore, then eventually they'll go away.

#11 OFFLINE   jpl

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Posted 05 August 2010 - 12:06 PM

Unless you subscribe to DIRECTV LA, what happens there doesn't reflect on DIRECTV as far as you're concerned. If the best ROI comes from investing in DIRECTV LA, where do you suppose they are going to spend their money?

What you're suggesting is something like recommending that everyone should buy GM stock because high end Buick sedans are very popular in China.


This takes a real leap to read bad news in this for DirecTV US operations. They had 100,000 net ads in the US... their ARPU took a big jump... and their churn remained flat. All while the US economy continues to flounder. How in the world is that not so great for the company?

As for your ROI argument - I think that's pretty short-sighted. What's the ARPU in LA? It rose, but nowhere near as much as it did in the US. I would bet that ARPU in the US is probably higher than in LA. Your argument is like saying Verizon won't continue to spend money on FiOS just because their cell service is their biggest cash cow. That's just nonsense. IF DirecTV were losing money in the US, then there's an argument to be made there - ditching US operations because their a drain on their bottom line. But US operations are far from a drain on their bottom line - the success in LA just gives them more money overall to spend on other 'stuff'. Going back to Verizon for a second, the reason they were able to spend $23Billion on FiOS is partly because of their wireless success. If wireless weren't so stinking profitable, where the hell would they get the money for other ventures? And yes, if high end Buick sedans were taking off in China, I would say it would be a great time to invest in GM. A product made by the company is very successful... ergo the company will be brining in more money as a result. Please explain how you can cast any negative light on this?

#12 OFFLINE   ATARI

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Posted 05 August 2010 - 01:56 PM

Unless you subscribe to DIRECTV LA, what happens there doesn't reflect on DIRECTV as far as you're concerned. If the best ROI comes from investing in DIRECTV LA, where do you suppose they are going to spend their money?

What you're suggesting is something like recommending that everyone should buy GM stock because high end Buick sedans are very popular in China.


Arguments always go better with a car analogy.

Even if the argument is flawed.

#13 OFFLINE   harsh

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Posted 07 August 2010 - 10:25 AM

I found it interesting to see the transcript of the conference call where Mr. White suggested that they were looking into PIP. After all of the turd that has been heaped on PIP by the faithful, it made me chuckle.

Too often we enjoy the comfort of opinion without the discomfort of thought. -- JFK


#14 OFFLINE   harsh

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Posted 07 August 2010 - 10:31 AM

How in the world is that not so great for the company?

I'm pointing out that what's great for the company may not be so great for its US subscribers.

Your argument is like saying Verizon won't continue to spend money on FiOS just because their cell service is their biggest cash cow. That's just nonsense.

Is it? Did Verizon not unload a good portion of their FIOS plant to Frontier?

Going back to Verizon for a second, the reason they were able to spend $23Billion on FiOS is partly because of their wireless success.

The question is how much Verizon FIOS did they end up with in the final analysis. To me, it seems like they decided that some of their service areas weren't going to be as profitable so they unloaded them in favor of brand new markets and expanding the most profitable markets. See the connection?

Too often we enjoy the comfort of opinion without the discomfort of thought. -- JFK


#15 OFFLINE   jpl

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Posted 09 August 2010 - 06:01 AM

I'm pointing out that what's great for the company may not be so great for its US subscribers.Is it? Did Verizon not unload a good portion of their FIOS plant to Frontier?The question is how much Verizon FIOS did they end up with in the final analysis. To me, it seems like they decided that some of their service areas weren't going to be as profitable so they unloaded them in favor of brand new markets and expanding the most profitable markets. See the connection?


They didn't unload a 'good portion' of their FiOS subscribers. They sold off three markets that had FiOS - WA, OR, and IN. That's it. The total number of FiOS subscribers in those three markets combined was miniscule - hence them selling them off. And it fell with Verizon's overall business plan of eliminating rural phone markets to move into a new paradigm. And it just bolsters my points - the rest of the FiOS footprint shows great promise for the company despite the fact that they haven't yet made a profit on it. So... the ROI in those markets is still really low (or non-existent) and yet they're STILL spending money on them. Interesting how that works. And where, pray-tell, did they get that money to spend?

What I find unrealistic is your assertion that, because subscriber growth for DirecTV was higher in LA than in the US, that it would somehow translate to them cutting service to US customers. Again, look at the ARPU in each market. I have no numbers to back this up, but I would be damn surprised if the ARPU in the US was significantly higher than in LA. Also, in the US they're the second larget TV provider... in the country. It's really hard to make the case that the US market is a drain for them. It's outrageously profitable. To believe that they're going to all of a sudden cut services to that market - a market which is MUCH more mature and penetrated (one other reason for lower growth in the US is the fact that the US is much more highly penetrated than LA, btw, with a hell of alot more competition) - is, sorry, extremely silly. This portends nothing bad for US subscribers, and the LA success just gives DirecTV gobs more money. The fact that you can look at that and find a dark cloud... well, that's a real stretch. There is no dark cloud there. The ONLY nit I would say that you can possibly make is that their churn rate hasn't fallen more than it has. But given competition in the market getting severe, and with more people opting for bundling discounts (due to the state of the economy) with their cable companies, DirecTV's performance is pretty astounding from where I sit... and I'm not even a customer.

#16 OFFLINE   Stuart Sweet

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Posted 09 August 2010 - 12:57 PM

Guys, let's not insult other members publicly. Part of being fair to everyone is being fair to people you don't agree with. Let's all act with a little more respect. Thanks.

I've deleted several posts.
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