DIRECTV Reports Q4 Results (DTV)
DIRECTV (NASDAQ:DTV) reported a rise in profit in the fourth quarter due to highest subscriber additions in the quarter resulted in 11 percent revenue growth. Both, adjusted earnings per share and revenue for the quarter exceeded analysts’ expectations.
The company’s net income for the fourth quarter was $618 million or $0.74 per share as compared with net loss of $32 million or $0.03 per share in the year-ago period. The adjusted earnings per share for the latest quarter rose to $0.74 from $0.48 in the previous-year quarter. The revenues stood at $6.62 billion, grew 11 percent from $5.98 billion in the prior-year quarter, resulting from strong growth at DirecTV U.S. and DirecTV Latin America or DTVLA. The DirecTV U.S. revenue grew 8 percent on strong subscriber growth and a 4.6 percent increase in average monthly revenue per subscriber or ARPU, while DTVLA revenue rose 23 percent mainly due to subscriber growth. In addition, the quarter also benefited from $59 million of net revenue generated by DirecTV Sports Networks, acquired as part of the transaction with Liberty Media. The DirecTV U.S. added 289,000 net new customers in the quarter as compared to net additions of 119,000 in the year-ago period. The monthly churn declined to 1.44 percent from 1.52 percent in the prior-year quarter. The DirecTV U.S. ended the quarter with 19.22 million subscribers, up from 18.56 million subscribers at the end of the prior-year period. The DTVLA ended the quarter with 5.81 million subscribers, up from 4.59 million subscribers a year ago. The average monthly subscriber churn was relatively unchanged at 1.55 percent.
For the full year, the company reported revenue increase of 12% to $20.3 billion as compared to 2009 principally due to solid growth from DIRECTV U.S. and DTVLA. The revenues at DIRECTV U.S. increased 9% in 2010 driven by a 4.9% increase in ARPU and subscriber growth while revenues at DTVLA grew 25% due to strong subscriber growth and a 1.5% increase in ARPU. The DIRECTV Sports Networks generated $237 million of net revenue in 2010 compared with $16 million in 2009. The net income more than doubled to $2.20 billion driven by the higher operating profit as well as a $67 million gain from the final settlement of the equity collars assumed in the Liberty Transaction. The diluted earnings per share for Class A stockholders was $2.30, more than double the prior year’s diluted earnings per share of $0.95.
The company expects to achieve earnings per share target of $5 per share in 2013. The company also has approved a $6 billion stock repurchase program.
DIRECTV stock is currently trading at $45.75. The stock is up 3.44 percent from its previous close. DIRECTV shares stock touched the high of $46.90 and lowest price in today’s session is $45.30. The company stock’s beta is 0.87.
The company stock has traded in the range of $31.00 and $46.90 during the past 52 weeks. The company’s market cap is $39.12 billion.
