| March 28
March 28 DirecTV said on Thursday it
expects to double its subscriber base and revenue in Latin
America in the next five years and increase its operating profit
to more than $3 billion.
Much of the satellite TV provider's subscriber growth has
been coming from Latin America, where it has been tapping into a
middle class with more spending power in countries like Brazil.
It also operates in Colombia, Argentina, Venezuela, Chile and
DirecTV, which has 8 million subscribers in Latin America,
is planning to reach more than 16 million subscribers in the
next five years, according to company handouts at an investor
presentation in New York.
Revenue is expected to double to $10 billion in five years,
while operating profit before depreciation and amortization will
increase from $1.7 billion this year to $3 billion. Annual
capital expenditures will rise to $1.6 billion from $1.4 billion
this year, according to the handouts.
President of DirecTV Latin America Bruce Churchill said
DirecTV's SKY Brasil business, in which it owns a 93 percent
stake, is the leading pay TV brand in Brazil. It offers high
definition services and digital video recorders similar to its
The company generates more revenue per subscriber in the
United States, but it does not have high programming costs for
sports in Latin America, which boosts its margins, Churchill
In Latin America, regional sports networks do not exist and
national sports often are free on the air, unlike in the United
States where it pays a premium for sports programming.
Last quarter, the company added 590,000 subscribers in Latin
America, which beat analysts' forecasts for 528,0000 according
to StreetAccount. The company said demand in Brazil, Argentina
and Venezuela was strong.
DirecTV shares were down 33 cents or 0.7 percent on