Thursday, DirecTV Group, Inc. (DTV), a provider of digital television entertainment, reported a marginally higher profit for the third quarter, helped by lower net income attributable to non-controlling interest, even as higher income tax expenses offset an increase in revenue and operating profitability. The company also witnessed subscriber gains being offset by higher customer cancellations.
The El Segundo, California-based company's third-quarter net income attributable to the DirecTV Group rose slightly to $366 million or $0.37 per share from $363 million or $0.33 per share a year ago.
On average, 19 analysts polled by Thomson Reuters estimated earnings of $0.39 per share for the quarter. Analysts' estimates typically exclude special items.
Net income for the quarter declined to $384 million from $398 million in the prior-year quarter. Net income attributable to non-controlling interest decreased to $18 million from $35 million in the third quarter of 2008.
Revenues for the third quarter increased 10% to $5.47 billion from $4.98 billion for the third quarter of 2008. Analysts expected revenues of $5.42 billion for the quarter. The increase in revenue was principally due to strong subscriber growth at DirecTV U.S. and DirecTV Latin America.
Segment wise, revenue from DirecTV U.S. Increased 9% to $4.70 billion from $4.32 billion in the prior-year quarter. The growth in revenue was due to subscriber and ARPU growth.
Commenting on the revenue growth in DirecTV U.S. segment, Larry Hunter, chief executive officer of the group, said, "Continued robust demand for our service fueled an 8% increase in gross additions to 1.1 million subscribers and net additions of 136,000 primarily due to the addition of AT&T as a marketing partner and record demand for our industry-leading HD and DVR services. In fact, about two-thirds of new subscribers signed-up for HD and/or DVR services in the quarter representing the highest level in our history."
Net subscriber additions from DirecTV U.S. Segment declined to 136 thousand in the quarter as an increase in gross additions was more than offset by higher customer disconnects. The 8% increase in gross additions to 1.09 million in the third quarter was mainly due to marketing of the AT&T/DirecTV bundle, as well as higher demand for HD and DVR services. Customer disconnects were higher in the quarter due to a higher monthly churn rate of 1.72% on a larger subscriber base, the company noted.
Revenue from DirecTV LATIN AMERICA climbed 16% to $761 million from $658 million in the prior-year quarter. Net additions more than doubled to 162 thousand in this segment due to continued strong subscriber growth throughout the region, which more than offset the unfavorable impact related to weaker currencies in countries such as Brazil and Argentina, the company noted.
In the DirecTV LATIN AMERICA segment, net subscriber additions more than doubled to 162 thousand due to a 22% increase in gross additions to 385 thousand and a decline in the average monthly churn rate to 1.75%. Gross additions increased principally due to strong subscriber demand across the region, particularly in Brazil, increased demand for HD and DVR services, as well as more attractive customer promotions. Average monthly churn declined primarily due to a 57 thousand downward subscriber adjustment made in the third quarter of 2008, the company said.
The company's operating profit for the quarter increased 4% $685 million from $658 million in the same quarter last year. Operating profit before depreciation and amortization was $1.35 billion, compared to $1.25 billion a year ago.
Income tax expense for the quarter increased to $219 million from $195 million a year ago.
In the preceding quarter, the company reported a 10.5% year-over-year decline in profit, hurt by lower operating margins and increased net interest expense, despite 8.5% revenue growth. Net income for the second quarter declined to $407 million from $455 million in the prior-year quarter, while earnings per share remained flat at $0.40 per share, due to 12% lower average shares outstanding. Second-quarter revenues increased 8.5% to $5.22 billion from $4.81 billion in the same quarter of 2008.
For the nine-month period, the company's net income attributable to the DirecTV Group declined to $974 million or $0.97 per share from $1.19 billion or $1.05 per share in the prior-year period. Revenue for the period increased 8% to $15.58 billion from $14.38 billion.
Operating profit for the nine-month period decreased to $1.81 billion from $2.12 billion in the year-earlier period.
Among competitors, Time Warner Cable Inc. (TWC) on Thursday reported a 11% fall in profit for the third quarter, hurt by higher interest expense, despite a 4% growth in revenues. The New York-based company reported that third-quarter net income attributable to the company was $268 million, compared to profit $301 million last year. On a per share basis, earnings fell 17% to $0.76 from $0.92 a year ago. Revenues for the quarter rose to $4.50 billion from $4.34 billion a year earlier.
Another peer, Comcast Corp. (CMCSA) on Wednesday reported a 22% increase in profit for the third quarter, helped by an increase in revenues and lower capital spending during the quarter. The Philadelphia, Pennsylvania-based company reported that net income attributable to the company increased to $944 million, or $0.33 per share, from $771 million, or $0.26 per share, in the year-ago quarter. Revenues for the quarter increased 3% to $8.80 billion from $8.55 billion in the prior-year quarter.
Yet another competitor, Cablevision Systems Corp. (CVC) on Tuesday revealed third quarter net income attributable to shareholders more than tripled to $98.94 million or $0.33 per share from $30.95 million or $0.10 per share in the same quarter last year. Revenues for the quarter increased 5% to $1.84 billion from $1.75 billion in the prior-year quarter.
Another peer, Englewood, Colorado-based DISH Network Corp. (DISH) is scheduled to report third quarter results on November 9th.
DTV is gaining $1.07 or 3.99%, and is trading at $27.91 on a volume of 16.97 million shares on the Nasdaq.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.