Revenue jumps 14% to $.6.8 billion
Big U.S. satcaster DirecTV said profit rose nearly 8% to $516 million last quarter as it added a record number of subscribers.Revenue jumped 14% to $.6.8 billion. DirecTV U.S. ended the quarter with 19.76 million subscribers, an increase of 4% over the year-earlier period. The El Segundo, Calif. company said net additions in the U.S. nearly doubled to 327,000 in the third quarter due in part to the NFL Sunday Ticket promotion. ARPU, or average revenue per user, rose to $92.21 due to price increases on programming packages and leased set-top boxes, as well as higher advanced service fees partially offset by more promotional offers to new and existing customers. DirecTV Latin America generated its best quarter ever with 574,000 net additions. Total third quarter net additions soared to 1.14 million “as the strength of DirecTV’s brands and unparalleled video experience fueled the largest net subscriber gain in DirecTV’s history,” said CEO Mike White. The operating margin declined to 23% due to higher programming costs at DirecTV U.S. mostly related to annual program supplier rate increases and the new NFL contract, as well as higher subscriber acquisition costs.
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