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DIRECTV Announces Second Quarter 2012 Results

Discussion in 'DIRECTV General Discussion' started by DodgerKing, Aug 2, 2012.

  1. Aug 2, 2012 #1 of 101

    DodgerKing Hall Of Fame

    Apr 28, 2008
    DIRECTV Latin America Increases Net Additions 37% to All-time Record 645,000 Surpassing the 9 Million Cumulative Subscriber Mark

    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.

  2. Aug 2, 2012 #2 of 101

    DodgerKing Hall Of Fame

    Apr 28, 2008
    A net gain in LA
    A net loss in US of 52k (I believe this is their first loss ever)

    A total net gain for US and LA combined
  3. Aug 2, 2012 #3 of 101

    raott Hall Of Fame

    Nov 23, 2005
    Are we seeing the affect of Dish Hopper marketing for the quarter?
  4. Aug 2, 2012 #4 of 101
    Go Beavs

    Go Beavs Hall Of Fame

    Nov 18, 2008
    That and the Viacom dispute probably.
  5. Aug 2, 2012 #5 of 101

    DodgerKing Hall Of Fame

    Apr 28, 2008
    Nope. Dish lost even more...much more
  6. Aug 2, 2012 #6 of 101

    raott Hall Of Fame

    Nov 23, 2005
    Dish only lost 10k in that same period according to the thread in the Dish forum. Even so, shoots the theory down that they went to Dish.

    FIOS isn't really building out, I think U Verse stopped as well, so is it cord cutters?
  7. Aug 2, 2012 #7 of 101

    onthecake AllStar

    Dec 11, 2006
    Happy to say I was in that list. Couldn't handle the performance of the lovely HR series anymore and their lack of a solution that didn't cost me even more money.
  8. Aug 2, 2012 #8 of 101

    lparsons21 Hall Of Fame DBSTalk Club

    Mar 4, 2006
    Herrin, IL
    I think the overriding factor that caused both D* and E* to have net loss of subscribers is more to do with the souring of the economy finally showing up in pay to watch TV. It is hard for many to want or can pay for TV when everything they buy has gone up and their paychecks haven't.
  9. Aug 2, 2012 #9 of 101

    harsh Beware the Attack Basset

    Jun 14, 2003
    Salem, OR
    While DISH hasn't made their official quarterly announcement, the 8K information says your much wrong.


    In the first half of the 2012, DISH has added 65,000 more net subscribers.

    DIRECTV's US profits remain high with their $94.40 ARPU; up $3.82 over last year's quarter. DIRECTV is fast approaching the triple digits in ARPU and I can't help but think that's going to be a plateau (but I could certainly be wrong).

    The DIRECTV LA news would be happier if their ARPU wasn't just over $57 and their churn at 1.80% but that's how they roll.

    SAC was $857, up 6.9% over last year. Attracting new customers has become VERY expensive.
  10. Aug 2, 2012 #10 of 101
    Sgt. Slaughter

    Sgt. Slaughter Hall Of Fame

    Feb 20, 2009
  11. Aug 2, 2012 #11 of 101

    raott Hall Of Fame

    Nov 23, 2005
  12. Aug 2, 2012 #12 of 101

    DodgerKing Hall Of Fame

    Apr 28, 2008
    Not wrong at all. This is the first quarter DirecTV has ever had a net loss is subs, ever. When you factor LA and US, they had a net gain. While Dish, over several quarters, has had a net loss of subs, a lot of subs.
  13. Aug 2, 2012 #13 of 101

    dcowboy7 Hall Of Fame

    May 22, 2008
    Pequannock, NJ
    Fios added 134,000....guess they dont have scissors.
  14. Aug 2, 2012 #14 of 101

    raott Hall Of Fame

    Nov 23, 2005
    The post you originally replied to (which Harsh then responded to) was about whether the Dish Hopper was affecting Directv's second quarter numbers. Nothing to do with LA or the first quarter. You asserted that Dish lost many more subscribers. It appears that is not true. Although they did lose 10k, it was not as many US customers as Directv. I'm sure Harsh will correct me, but that is likely why he said you were wrong.
  15. Aug 2, 2012 #15 of 101

    RAD Well-Known Member

    Aug 5, 2002
  16. Aug 2, 2012 #16 of 101

    MysteryMan Well-Known Member DBSTalk Club

    May 17, 2010
    The Viacom dispute occurred in the 3rd quarter.
  17. Aug 2, 2012 #17 of 101

    mdavej Hall Of Fame

    Jan 30, 2007
    But Fios has a lot more to offer than most other providers (faster internet, perfect PQ, etc.). I think they are an anomaly. Nearly everyone else is losing subs, likely due to cord cutters, many of whom are driven by costs.

    What is a bit surprising to me is these losses are despite the most aggressive marketing and best equipment ever (free ST and 5 tuner DVR with HD GUI from DirecTV, and PTAT and Auto-Hop with the Hopper from Dish). So even though the services are better than ever, there's still not enough value there to justify the high cost for many.
  18. Aug 2, 2012 #18 of 101

    Gloria_Chavez Godfather

    Aug 11, 2008
    It's finally impacted D*. Took awhile, but it was inevitable.

    Glance at my signature line.

    The real median income continues to decline. Yet, PayTv distributors ask for 7%+ annual rate hikes. Something's gotta give.

    The ESPN negotiations will be interesting. As someone who doesn't watch much sports (except for the occasional Cardinal football game), I do hope that the PayTV distributors tell ESPN, we'll pay you 70% of what we were paying you last year, take it or leave it.

    Solve the ESPN problem and you solve the PayTV subscriber problem.

    Nonsports fans do not want to continue subsidizing the sports fanatic.
  19. Aug 2, 2012 #19 of 101

    tonyd79 Hall Of Fame

    Jul 24, 2006
    Columbia, MD
    You really are fixated on espn. They are not the source of all evils in this business.
  20. Aug 2, 2012 #20 of 101

    tsduke Godfather

    Mar 20, 2007
    I don't want to subsidize your Hallmark or Lifetime, or any of those type of channels either. So I guess we are even.

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