DirecTV revenues up 8% to $7.6B, adds 0.607 M subscribers in 1Q 2013
El Segundo, Calif., May 7, 2013 —DirecTV increased its first quarter 2013 revenues by 8 percent to $7.58 billion beating analysts expectations, although net income was down $690 million or $1.20 per share compared to $731 million or $1.07 per share a year ago.
The satellite TV provider added 604,000 net subscribers in the first quarter with its Latin America division adding 583,000 surpassing 16 million total subscribers, extending the company’s lead as the largest pay-TV provider in the region.
The company said the increase in revenue was driven by DirecTV U.S. ARPU growth of 4.4 percent along with strong DirecTV Latin America subscriber growth. However, the company's profits were hit by a $166 million pre-tax charge because the company's subsidiary in Venezuela lost assets when the country's currency was devalued in February.
"Building on the momentum of one of the largest transitional years in our history, DirecTV delivered another strong quarter of operating and financial results," said Mike White, president and CEO of DirecTV.
"Our industry leading revenue growth of 8% continues to be driven by the strength of our premier brands and popularity of our differentiated product and service offerings across the Americas, as well as our ability to profitably grow ARPU in a challenging U.S. operating environment," he added.
Adjusted operating profit before depreciation and amortization (OPBDA) increased 10 percent and adjusted operating profit increased 8 percent in the quarter while adjusted OPBDA margin increased to 27.5 percent and adjusted operating profit margin was unchanged at 18.6 percent.
Adjusted OPBDA margin improved primarily due to lower subscriber acquisition costs at DirecTV U.S. and Sky Brasil, as well as the absence of an NFL Sunday Ticket game in the first quarter of 2013.