Even though net income fell, it exceeded forecasts enough to send the share price up more than 6% in pre-market trading. The No. 1 satellite company says Q1 earnings came in at $698M, -5.8% vs the period last year, on revenues of $7.58B, +7.6%. Revenues topped the consensus expectation of $7.53B. And earnings at $1.20 a share were well ahead of predictions for $1.08. Excluding a $166M pre-tax charge from a revaluation of the operations in Venezuela, where the currency was devalued in February, earnings would have hit $1.43. The U.S. business more than held its own, even though subscription growth slowed: DirecTV ended the quarter with 10.2M subs, +0.7% vs a year ago, as the company says it is tightening credit policies to focus on “higher quality subscribers.” Domestic revenues rose 5.3% to $5.79B while operating profits were +7.4% to $1.12B. The company says that price increases and an uptick in movie buys outweighed an increase in promotional offers and the absence of one NFL Sunday Ticket game vs last year. Meanwhile the business in Latin America continues to impress. It has about 10.9M subs, +28.9% with revenues +16.4% to $1.73B and an adjusted operating profit of $283M, +13.7%. CEO Mike White says DirecTV is “building on the momentum of one of the largest transitional years in our history” and will “continue to return cash to shareholders through stock repurchases at an industry leading clip.”
By DAVID LIEBERMAN, Financial Editor | Tuesday May 7, 2013 @ 9:01am EDTTags: DirecTV, NFL Sunday Ticket
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