DIRECTV Revenues Grow 9% to $7.22 Billion
Increase driven by strong DIRECTV Latin America subscriber growth coupled with 4.2% higher ARPU at DIRECTV U.S.
Operating Profit before Depreciation and Amortization Increases 9% to $2.01 Billion and Operating Profit Grows 15% to $1.41 Billion
Growth driven by DIRECTV U.S.'s 10% increase in operating profit before depreciation and amortization to $1.59 billion and 20% increase in operating profit to$1.22 billion.
DIRECTV's Diluted Earnings per Share Rise 20% and Stock Repurchases Total $1.35 Billion in the Quarter
EL SEGUNDO, Calif.--(BUSINESS WIRE)-- DIRECTV (NASDAQ:DTV) today reported an increase in second quarter 2012 revenues of 9% to $7.22 billion, operating profit before depreciation and amortization1 (OPBDA) of 9% to $2.01 billion and operating profit of 15% to $1.41 billion compared to last year's second quarter. DIRECTV reported that second quarter net income increased 1% to $711 million and diluted earnings per share grew 20% to $1.09 compared with the same period last year.
"DIRECTV's strong second quarter consolidated results reflect the unique benefits from our diversified portfolio of businesses which are driving industry leading top-line and bottom-line results," said Mike White, president and CEO of DIRECTV. "DIRECTV Latin America's results demonstrate our competitive advantages in a rapidly growing market by achieving an all-time record of 645,000 net additions and 20% revenue growth in the quarter even with currency headwinds. In addition, DIRECTV U.S. delivered the highest operating profit before depreciation and amortization growth in two years accelerating to 10%, an early indication of successfully executing on our long term strategy of striking a more optimal balance between growth and profitability. Also by leveraging the achievements of both DIRECTV Latin America and DIRECTV U.S. with the continuation of our share repurchase program, earnings per share increased by 20% in the quarter."
DIRECTV'S Operational Review
Second Quarter Review
DIRECTV's second quarter revenues of $7.22 billion increased 9% principally due to subscriber growth at DIRECTV Latin America (DTVLA) and DIRECTV U.S. over the past twelve months. Also impacting the comparison was higher ARPU and net subscriber losses of 52,000 in the second quarter at DIRECTV U.S. Operating profit before depreciation and amortization (OPBDA) increased 9% to $2.01 billion in the quarter compared with the same period last year. OPBDA margin declined due to higher customer service, upgrade and retention and subscriber acquisition spending at DTVLA, partially offset by higher DIRECTV U.S. OPBDA margin principally driven by lower subscriber acquisition, upgrade and retention costs, as well as relatively unchanged customer service expenses. Also in the quarter, operating profit increased 15% to $1.41 billion and operating profit margin increased to 19.5% due to lower depreciation expense at DIRECTV U.S.