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The DIRECTV Group Announces Third Quarter 2006 Results

EL SEGUNDO, Calif.--(BUSINESS WIRE)--The DIRECTV Group, Inc. (NYSE:DTV - News) today reported that third quarter revenues increased 13% to $3.67 billion and operating profit before depreciation and amortization(1) more than doubled to $894 million compared to last year's third quarter. The DIRECTV Group reported that third quarter 2006 operating profit quadrupled and net income more than tripled to $628 million and $370 million, respectively, when compared to the same period last year. Earnings per share were $0.30 compared with $0.07 in the same period last year. These financial results include the effect of $325 million of equipment that DIRECTV U.S. capitalized during the third quarter under its lease program, which was implemented March 1, 2006
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Read the rest of the article: DirecTV.Com Investor Relations

Reminder Q3 WebCast is today 11/8/2006
http://www.dbstalk.com/showthread.php?t=67749
 

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Carey concluded, "In the coming months, we look forward to launching another 30 markets with standard definition local channels and 12 markets with high definition local channels, bringing our total coverage to approximately 97% and 70%, respectively, of U.S. TV households.

Where are they going to put another 30 SD local markets, more on 72.5?
 

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From boba:
What was the customer increase and what was the churn?
On DirecTV's press release:
The improved subscriber base and higher penetration of advanced services are also the main factors driving the average monthly churn rate down from 1.89% last year to 1.80% in the current period, resulting in 165,000 net subscriber additions in the quarter.
Not so good in growing the base; way good in the profitability department.
 

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Looks like DTV admitted they are having some quality issues rolling out the advanced stb. At least they have acknowledged the issues at the highest level in the company.

Lets see how effective they are ad managing the new STB and services roll-out.


Keith
 

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Monthly churn percentage:

The amount of subscribers in a given month that leave compared to the total amount of subscribers.

So, DirecTV added about 1 million subscribers during the three month period, and lost about 835,000.

That means if dividing the loss of customer by three, about 278K leave a month. With a subscribers base of just about 15.5 million, DirecTV loses about 1.8 percent of their customer base per month. The good news is that DirecTV adds more subscribers than they lose.
 

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So it's not a term that describes how the actual customer base changes in a month rather one that relates the actual number of customers who leave in a month to the total customer base. Kinda describes customer dissatisfaction. Am I close? Oh and thanks for the explanation.
 

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Correct. And it isn't necessarily customer dissatisfaction.

There are "voluntary" and "involuntary" categories for churn. Of course, that is those leaving for something else, and those leaving because they don't pay their bills.

Those that voluntarily leave might be getting a better deal, because another provider has a better price/product or because another provider can bundle your TV, phone and internet service. That doesn't relate directly to dissatisfaction.

However, the webcast call mentioned that some people were leaving because of issues with equipment. So that, in and of itself, is a dissatisfaction point.
 

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krkeeton said:
Does anyone know where they have listed their proposed new 30 sd markets. I am in an area not covered now and am wondering if I might be in one of them.
I don't particularly like to propose some things. However, this may be a bit easier than I thought:

I am assuming DirecTV 9S is used to help roll-out another 30 markets. If 9S is used, it will be a very similar configuration to the current DirecTV 4S satellite. It is very possible, since DirecTV 9S is more powerful than DirecTV 4S, that DirecTV could simply replace DirecTV 4S.

Now keep in mind that some of these markets may not have but one or two affiliates. Specifically, I am thinking of Wheeling/Steubenville and Salisbury, MD, along with Lafayette, IN and St. Joseph, MO. There appears to be enough space to add these markets currently, but I believe some power constraints with the DirecTV 4S satellite make it impossible to add these now.

My thinking:
Pittsburgh beam - only 9 channels on the transponder.
Balt/Wash/Harrisburg DC beam - 14 channels on 1 xpdr, 10 on the other
Indy/Chicago beam - 12 channels on one transponder
KC beam - 9 channels on one transponder

It wouldn't be to difficult to add many smaller markets, and also add some larger markets.

For example, if DirecTV 4S is used in conjunction, albeit at a reduced capacity, many of the largest markets will also be covered.
 
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