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DirecTV Reports Mixed Q1 - Broadcasting & Cable

DirecTV Reports Mixed Q1

U.S. adds 12K subs, but Latin American currency pressures mute growth
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While speculation continues to swirl around possible merger talks between DirecTV and AT&T, the satellite giant reported mixed first quarter results, with U.S. operation turning in strong financial results and its Latin American unit pressured by declining currency valuations.

Reports last week citing unnamed sources claimed AT&T had approached the satellite giant about a possible merger, adding that discussions were preliminary and could break down at any moment. Both DirecTV and AT&T have declined comment.

While a possible AT&T merger would give DirecTV some added heft, the company managed to add about 12,000 net new subscribers in the U.S. in the first quarter, slightly below some analysts’ estimates of 16,000 additions. Still, domestic revenue rose 5% to $6.1 billion and operating profit before depreciation and amortization rose 10% to $1.67 billion in the period, indicating that efforts to attract higher margin customers are succeeding.

For the full story go to Multichannel.com.

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