DirecTV Posts First-Ever Quarterly U.S. Subscriber Decline
UPDATED: The satellite TV giant lost 52,000 U.S. video customers in the second quarter, but hit an all-time user growth record in Latin America.
DirecTV on Thursday reported its first-ever quarter of U.S. subscriber declines, but set a new company record for user growth in Latin America.
The satellite TV giant, led by CEO Mike White, posted a profit of $711 million, up 1 percent. Revenue grew 9 percent to $7.22 billion.
But U.S. subscribers fell by 52,000, compared with a year-ago gain of 26,000. DirecTV ended June with 19.91 million U.S. subscribers.
The decline came before a cable networks carriage dispute with entertainment conglomerate Viacom last month.
"DirecTV U.S. delivered the highest operating profit before depreciation and amortization growth in two years accelerating to 10 percent, an early indication of successfully executing on our long term strategy of striking a more optimal balance between growth and profitability," White said.
The fast-growing DirecTV Latin America business added 645,000 subscribers in the second quarter, up from 472,000 in the year-ago period, to end June with more than 9.1 million. The quarter growth pace set a company record.
"DirecTV Latin America's results demonstrate our competitive advantages in a rapidly growing market by achieving an all-time record of 645,000 net additions and 20 percent revenue growth in the quarter even with currency headwinds."