DIRECTV (NASDAQ:DTV) released the results from its first quarter, posting adjusted earnings of $1.63 per share, a 14% increase, on $7.86 billion in revenue, a 4% increase. Analysts had been expecting adjusted earnings of $1.50 per share on $7.92 billion in revenue.
Breaking down DIRECTV’s earnings
Adjusted profit before depreciation and amortization rose 7% to $2.2 billion, while adjusted operating profit also increased 7%, rising to $1.51 billion. Reported earnings per share for the first quarter fell to $1.09 per share from $1.20 per share in the same quarter a year ago. Profits also declined, slumping to $561 million from $690 million in the same quarter a year ago.
“In the U.S., operating profit before depreciation and amortization margin expanded year-over-year for the third consecutive quarter, highlighting our commitment to profitably grow our businesses through significantly improving the customer service experience, disciplined expense management and productivity initiatives,” said DIRECTV (NASDAQ:DTV) President and CEO Mike White in a statement. “In Latin America, despite challenging macroeconomic headwinds, we continue to profitably expand our share of the growing pay TV market while delivering adjusted OPBDA margin of 30%. In addition, by leveraging the achievements of both DIRECTV U.S. and DIRECTV Latin America with the strength and stability of our cash flow, we continue to return cash to shareholders through stock repurchases at an industry leading clip.”
The satellite TV provider bought back $895 million worth of shares during the first quarter.
DIRECTV adds subscribers
DIRECTV (NASDAQ:DTV) said it passed 38 million total subscribers in the first quarter, including 361,000 net new customers in Brazil and PanAmericana. That brings the company’s Latin America and Sky Mexico combined subscriber base to more than 18 million. DIRECTV owns about 93% of Sky Brasil, 41% of Sky Mexico and all of PanAmericana.
U.S. revenues rose 5% to $6.09 billion year over year because of strong growth in average revenue per user and an increase in the company’s subscriber base. DIRECTV (NASDAQ:DTV) added 12,000 net new subscribers, a decline from the same quarter a year ago because of a larger number of subscriber disconnections due to the bigger subscriber base. Gross additions were 891,000, while the average monthly churn rate was essentially flat at 1.45%.