DirecTV, Buying Back $1 Billion Worth Of Its Share

DirecTV Group Inc. , the largest U.S. satellite television operator, said on Thursday quarterly net income fell slightly on higher costs related to its premium services.

DirecTV, which rivals EchoStar Communications Corp. and competes with cable TV providers, also said its board authorized the repurchase of up to $1 billion in shares.

DirecTV, expected to come under the control of Liberty Media Corp. this year, said net income was $448 million, down from $459 million a year earlier.

On a per-share basis, profit was 37 cents, including 1 cent from discontinued operations, against 36 cents last year.

DirecTV said income from continuing operations was $431 million, or 36 cents a share.

Analysts were looking for income of $443 million, or 36 cents a share, according to Reuters Estimates.

It said that costs for adding and upgrading subscribers were higher than the prior year as more customers added high definition and digital video recorder services.

Revenue rose to $4.14 billion from $3.52 billion a year earlier as its subscriber numbers grew, benefiting from a sharp rise in HD and DVR customers.

The increase in customer demand for advanced services also contributed to the higher gross additions of 900,000 and net U.S. subscriber additions of 128,000 in the quarter, DirecTV said.

However, some analysts were looking for additions in the range of 130,000 to 150,000.

Liberty is due to exchange a stake in Rupert Murdoch's News Corp. for a close to 40 percent controlling stake in DirecTV in a deal expected to close by the end of the year.

Shares of DirecTV fell more than 2 percent in early trading on the New York Stock Exchange after some disappointment with the net subscriber additions number. But shares recovered, last trading up 7 cents at $22 in New York Stock Exchange trading.

Rival EchoStar is due to report quarterly results on Friday.

Sphere: Related Content

No comments: