Post by dkennedy on May 10, 2007 6:29:21 GMT -5
DIRECTV: Profits Jump On HDTV Subs
But the satcaster says growth is still slowing.
May 9, 2007
By Phillip Swann, tvpredictions.com
DIRECTV today said its first quarter profits jumped 43 percent due largely to an increase in High-Definition subscribers.
"Particularly noteworthy was the significant growth in advanced products in the quarter, including the addition of nearly twice as many High Definition, or HD, customers compared to the prior year," said Chase Carey, DIRECTV's president and CEO.
The company's profit increased to $336 million, compared to $235 million in the 2006 first quarter. Total revenue also rose 15 percent.
DIRECTV said it added 235,000 overall subscribers in the first quarter and twice as many high-def subs compared to last year's first quarter.
However, DIRECTV added 255,000 subs overall in last year's first quarter, a sign that non-HD subscription growth is slowing. The satcaster now has 16.2 million subs.
Revenue still rose, however, because DIRECTV's average monthly revenue per customer increased 5.2 percent to $73.40. The company credited the rise in high-def and Digital Video Recorder subs.
"The increased sales of HD and digital video recorders are driving favorable results for most of our key operating metrics," Carey said. "It's very exciting to see the strong demand for HD services, particularly considering the fact that we plan to greatly expand our HD programming later this year."
DIRECTV plans to offer 100 national high-def channels by year's end and will launch the first of two new satellites next month to expand capacity.
But the satcaster says growth is still slowing.
May 9, 2007
By Phillip Swann, tvpredictions.com
DIRECTV today said its first quarter profits jumped 43 percent due largely to an increase in High-Definition subscribers.
"Particularly noteworthy was the significant growth in advanced products in the quarter, including the addition of nearly twice as many High Definition, or HD, customers compared to the prior year," said Chase Carey, DIRECTV's president and CEO.
The company's profit increased to $336 million, compared to $235 million in the 2006 first quarter. Total revenue also rose 15 percent.
DIRECTV said it added 235,000 overall subscribers in the first quarter and twice as many high-def subs compared to last year's first quarter.
However, DIRECTV added 255,000 subs overall in last year's first quarter, a sign that non-HD subscription growth is slowing. The satcaster now has 16.2 million subs.
Revenue still rose, however, because DIRECTV's average monthly revenue per customer increased 5.2 percent to $73.40. The company credited the rise in high-def and Digital Video Recorder subs.
"The increased sales of HD and digital video recorders are driving favorable results for most of our key operating metrics," Carey said. "It's very exciting to see the strong demand for HD services, particularly considering the fact that we plan to greatly expand our HD programming later this year."
DIRECTV plans to offer 100 national high-def channels by year's end and will launch the first of two new satellites next month to expand capacity.