* Fourth-quarter revenue $8.59 bln vs est $8.47 bln
* Attributable earnings $1.53 vs est $1.28
* U.S. net subscriber growth falls 10 pct
* Latin America net subscriber growth drops 65 pct
Feb 20 Satellite TV provider DirecTV on
Thursday reported fourth-quarter results that topped Wall Street
estimates with better-than-expected U.S. growth and announced a
$3.5 billion share buyback, sending its stock up nearly 3
The company said it added 93,000 U.S. subscribers for the
quarter that ended in December as it focused on "higher quality
subscribers" in a mature market. That was nearly 10 percent less
than a year earlier, but above analysts' forecasts.
The average monthly revenue per U.S. user rose 6.3 percent
Net income attributable to DirecTV fell to $810 million, or
$1.53 per share, from $942 million a year earlier, due in part
to a one-time gain in 2013 from the sale of its stake in the
Game Show Network.
Revenue rose 7 percent to $8.59 billion.
Analysts on average had expected earnings of $1.28 per share on
revenue of $8.47 billion, according to Thomson Reuters I/B/E/S.
The company added 231,000 customers in Latin America, its
largest growth area. The additions were 65 percent lower than
the same quarter a year earlier.
Subscriber numbers in the region, where the company is
tapping into a growing middle class, were hurt by a fall in
imports of set-top boxes in Venezuela and weak economic
conditions in Argentina, Colombia and Chile, the company said.
Northland Securities analyst Tom Eagan said DirecTV beat his
forecast for 84,000 new customers in the United States but fell
short of his 400,000 estimate for Latin America. Still, he
called the overall results "very solid."
"On the whole, these results confirm our thesis for DTV:
consistent and growing US operations accompanied by a more
volatile Latam business," Eagan said in a research note.
DirecTV Chief Executive Officer Mike White said the company
was assessing the impact of Comcast Corp's proposed
purchase of Time Warner Cable Inc, which was announced
on Feb. 13.
"If the deal is approved as proposed, it clearly represents
an unprecedented media concentration in one company," White said
on a conference call with analysts.
DirecTV has not decided what stance it will take with U.S.
regulators who will review the deal, White said.
Areas deserving scrutiny include "the effective broadband
monopoly they might have in as much as two-thirds of the
country," White said, as well as "the interaction between
horizontal power and the vertical power that they would have
with content costs."
DirecTV said it had 20.25 million subscribers in the United
States at the end of 2013, up about 0.8 percent from 2012. In
Latin America, its customer base grew 12 percent to 11.57
Shares of DirecTV rose 2.8 percent to $74.97 in afternoon
trading on Nasdaq.