DirecTV Grows First-Quarter Subs, Earnings Drop Amid Venezuela Charge
UPDATED: The satellite TV giant added 12,000 U.S. TV customers in the period, down from 21,000 in the year-ago quarter as a charge for its Venezuelan unit was a drag on the bottom line.
DirecTV on Tuesday reported improved first-quarter revenue but lower earnings amid continued subscriber gains. However, its customer growth slowed compared with the year-ago period.
The satellite TV giant, led by CEO Mike White, added 12,000 U.S. TV customers in the period, down from 21,000 in the year-ago quarter. It ended March with a total U.S. subscriber base of 20.265 million.
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Quarterly revenue grew 4 percent to $7.86 billion. Earnings of $561 million dropped from $690 million in the year-ago period, driven by a $281 million charge for a revaluation of the company's Venezuelan business due to a currency devaluation in the country. Excluding the charge, adjusted operating profit for the first quarter rose 7 percent.
DirecTV Latin America added 361,000 net subscribers in the latest quarter, down from 583,000 in the year-ago period, to end March with a total of 11.929 million subscribers.
White cited "challenging macroeconomic headwinds" in Latin America but said DirecTV continues to profitably grow its business across its operations. "Our first-quarter results continue to demonstrate the strong execution of our operations," he said.