UPDATE, 7:15 AM: Investors appear to be more concerned this morning about DirecTV’s potential weakness in the U.S. than they are with its better-than-expected financial performance in 2Q. The stock price is down 6% in early trading. “Unfortunately, the picture in the U.S. isn’t all that appealing,” says Bernstein Research analyst Craig Moffett. Subscriber growth is “unmistakably slowing,” he adds: The 26,000 pickup in domestic subscribers for the quarter is DirecTV’s lowest ever and constrasts with 100,000 a year ago.
PREVIOUS, 5:28 AM: The No. 1 satellite company reported 2Q net income of $701M, up 29% vs the same period last year, on revenues of $6.6B, up 12.9%. Earnings at 91 cents a share handily beat the 85 cents that analysts forecast. They expected revenues to come in at $6.5B. The company says it ended June with 19.4M subscribers, up 4% from a year ago. Higher prices for subscriptions and leased set-top boxes outweighed the promotional discounts. The company also saw big improvements in Latin America where DirecTV has 6.7M subscribers, up 28% from last year. The growth efforts abroad “did not come at the expense of profitability,” CEO Mike White says. But he warned that the “challenging economic and competitive landscape continues to impact DirecTV U.S.”


They raise rates yet again because of this now and I’m GONE.
I have Directv and t heir service -despite their commericals- is horrible. The only good thing – if you’re smart enough to figure it out – is they have an escalated custom er service that they term ‘the president’s office” and if you contact those folks, you will at least get some smarter people who are more able to fix problems. But the regular folks are idiots..I had tons of problems with bad installation, missed appointments (and not even calling), still have a dish up that doesn’t get all the channels but they didn’t tell me that when they installed it, numerous times where reps outried lied to me repeatedly. Just a nightmare. IF I had to do it over again, I would not get directv.
What are you gonna do, get cable? Cable sucks and it’s really overpriced. Over the air “digital” TV is nonexistent, the Government basically stole broadcast from you.
DirecTV customer service isn’t bad. Stay on them and they will make concessions, they want to keep you as a subscriber.
Like the first commenter, though, I would caution DirecTV against raising rates in the immediate future.
What stocks DIDN’T crater yesterday??
So far I am very happy with them. Customer care works hard to keep customer happy. Enjoy the new Audience channel.