Soccer World Cup helps DirecTV net more subscribers

Thu Jul 31, 2014 10:08am EDT

1 of 2. A DirecTV satellite dish is seen on a home in the mountains outside Golden, Colorado May 18, 2014.

Credit: Reuters/Rick Wilking

Related Topics

(Reuters) - DirecTV (DTV.O), the No.1 U.S. satellite TV provider, reported quarterly revenue above analysts' estimates as the soccer World Cup helped it add subscribers in Latin America and prices increased in the United States.

The company added 543,000 subscribers in Latin America, its largest growth area, in the second quarter ended June 30.

DirecTV had added 165,000 a year earlier in the market, where it is tapping into a growing middle class.

"The increase ... was primarily driven by demand related to the Fifa World Cup," the company said on Thursday.

The tournament was held in Brasil between June 12 and July 13.

Average revenue per user in the United States rose by 4.6 percent to $103.26, helped by price hikes on programming packages and higher advanced receiver service fees and other services.

U.S. net subscriber disconnections fell to 34,000 from 84,000.

Net income attributable to the company rose to $806 million, or $1.59 per share, from $660 million, or $1.18 per share, a year earlier.

Revenue increased to $8.11 billion from $7.70 billion.

Analysts on average had expected earnings of $1.53 per share on revenue of about $8.02 billion, according to Thomson Reuters I/B/E/S.

DirecTV shares, which have gained about 38 percent this year, were set to open marginally up. They had closed at $86.25 on the Nasdaq on Wednesday.

(Reporting by Supantha Mukherjee and Aurindom Mukherjee in Bangalore; Editing by Joyjeet Das)

FILED UNDER:
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

Find your dream retirement town

Florida? Hawaii? Reuters has teamed up with Zillow to give you the power to customize a list of your best places to retire.  Video | Full Article