DirecTV profit up but subscriber growth slows Reuters
Tuesday, August 8, 2006; 11:06 AM http://www.washingtonpost.com/wp-dyn/content/article/2006/08/08/AR2006080800423_pf.html NEW YORK (Reuters) - DirecTV Group Inc. (DTV.N), the nation's largest satellite television operator, said on Tuesday it posted a higher profit for the second quarter even as its subscriber growth slowed below its expectations. The company, controlled by Rupert Murdoch's News Corp. (NWS.N) reported a net profit of $459 million, or 36 cents per share, compared with $162 million, or 12 cents per share, a year earlier. Profit was in part boosted by a change in its accounting practice from March 1 which now sees costs for set-top boxes capitalized and depreciated over their estimated useful lives of three years. It added $253 million to the operating results. The satellite operator's net subscriber numbers rose by 125,000, a slower growth rate than the same period a year ago when it added 225,000 customers. Shares were off 15 cents, or 0.9 percent, at $17.16 in early trading on the New York Stock Exchange. Revenue rose to $3.52 billion from $3.19 billion a year ago as its subscriber numbers grew. Average revenue per user in the U.S. was up 5.9 percent to $71.59 a year earlier. It also reduced customer turnover, known as churn to 1.59 percent down from 1.69 percent. DirecTV has been the subject of renewed merger speculation in the past month, that it might combine with smaller satellite operator rival EchoStar Communications Corp. (DISH.O). Shares in DirecTV have risen by more than 4 percent since July 17 while shares in EchoStar have risen by nearly 9 percent in the same period. ================================ George Antunes, Political Science Dept University of Houston; Houston, TX 77204 Voice: 713-743-3923 Fax: 713-743-3927 antunes at uh dot edu Reply with a "Thank you" if you liked this post. _____________________________ MEDIANEWS mailing list [email protected] To unsubscribe send an email to: [EMAIL PROTECTED]
