DirecTV Revs Up 7%, Dip In U.S. Subscribers

While DirecTV continued to make gains in subscribers in other countries, it lost ground in the U.S., according to its recent mixed second-quarter results.

DirecTV lost 84,000 U.S. subscribers in the quarter -- ending with 20 million U.S. customers. Still, U.S. revenues increased 5% to $5.94 billion.

But other territories continued to grow, although at a slower rate. Latin America added 165,000 net subscribers, but this was down from 645,000 in the year-ago period. DirecTV now has 11 million Latin American subscribers.

Overall, DirecTV’s revenues were up 7% to $7.7 billion. Net income fell to $660 million from $710 million. The company said this was also the result of lower operating profit from a nearly $60 million charge, due to the de-consolidation of DirecTV Sports Network Northwest that resulted from the renegotiation with the Seattle Mariners.

These results were below expectations. Midday trading of DirecTV stock was down 3.6% to $61.00. DirecTV's average monthly revenue per subscriber rose to $98.30 a month from $94.40.

Programming costs continued to climb -- up to $3.27 million in the second quarter from $2.99 million. Over the last six months programming costs were at $6.47 million, up from $5.96 million.
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