DirecTV Flies High
"The question, of course, is whether any company can remain impervious to a recession of this magnitude," wrote Sanford C. Bernstein & Co. Inc. analyst Craig Moffett, who expected DirecTV to add 214,600 net new subs and ARPU of $91.35 in the period. "Despite the strong result, annual subscriber growth of 4.7% remains below 5%, meaning that future revenue growth will depend heavily on the direction of ARPU."
DirecTV, which ended 2008 with 17.6 million total subs, posted consolidated revenue of $5.31 billion, up 9 percent year-over-year, and in-line with analyst expectations. But net income dipped to $332 million, versus $532 million in the previous quarter, while acquisition costs rose to $724, versus $715 in the previous period -- the only negatives in what was a blow-out quarter.
— Jeff Baumgartner, Site Editor, Cable Digital News