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.”
Subscribe to Deadline Breaking News Alerts and keep your inbox happy.