by Christopher Freeburn | August 2, 2012 12:43 pm
DirecTV (NASDAQ:DTV) announced that it earned $711 million during the second quarter, up from $701 million in the same period last year.
Revenue increased 9% over 2011 to $7.2 billion, which narrowly missed the $7.21 billion that Wall Street had forecast, Reuters noted. EPS for the quarter was $1.09, up from 91 cents last year. That missed the $1.13 a share that analysts were looking for.
Shares of DirecTV slipped about 2% in Thursday midday trading.
The satellite TV service provider said it lost 52,000 subscribers during the quarter. That was well more than the 36,000 analysts expected, and it was DirecTV’s first quarterly subscriber loss. Revenue per subscriber rose from $90.58 last year to $94.40 due to price increases.
The company currently has about 19.91 million U.S. subscribers.
DirecTV officials attributed the subscriber decline to heightened credit requirements and a reduction in subscribers at its telcom sales channel partnership with Verizon (NYSE:VZ).
Outside the U.S., DirecTV attracted 654,000 new subscribers in Latin America. Wall Street had forecast just 549,000 new subscribers in the region.
Time Warner Cable (NYSE:TWC) noted that it had lost video service subscribers during the second quarter, but topped earnings estimates. Satellite rival Dish (NASDAQ:DISH) reported just 10,000 subscribers lost during the second quarter. That compared to 135,000 subscribers who left Dish in the second quarter of last year.
Source URL: http://investorplace.com/2012/08/directv-profit-misses-loses-subscribers-in-q2/
Short URL: http://invstplc.com/1fuF4sg
Copyright ©2016 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.