DIRECTV Posts Q4 Loss on Merger Charge

EL SEGUNDO: DIRECTV reported a 13-percent increase in its fourth-quarter revenues to $5.98 billion as well as subscriber additions at its U.S. and Latin American operations, but has reported a $32 million net loss as a result of a $491 million pre-tax charge related to the merger with Liberty Entertainment.

Excluding the one-time charge, the satellite-TV giant said that profit was up 37 percent to $454 million. “I am thrilled to be joining DIRECTV at a time when it has just completed one of its strongest years ever,” said Mike White, the new president and CEO of the company. “Strong fourth quarter results capped a record-setting year for both our U.S. and Latin American businesses as DIRECTV became the world’s largest provider of pay television services while also growing full year consolidated revenues by nearly 10 percent to $21.6 billion and free cash flow by over 40 percent to a record $2.4 billion."

White added: “We head into 2010 with strong operating and financial momentum. In the U.S., we look to extend our video leadership with the introduction of many innovative and differentiated services including Multi-Room Viewing, 3-D, DIRECTV Cinema and the debut of our much-anticipated Home Media Center in the second half of this year. In Latin America, we’re expecting another year of tremendous growth fueled by greater sales of our popular pre-paid services, increasing demand for HD and DVR services, as well as unparalleled coverage of the FIFA World Cup. With these strengths in both the U.S. and Latin America, we’re targeting another strong year financially as DIRECTV again strives for industry-leading top-line and bottom-line growth rates.”

At DIRECTV U.S., revenues gained 8 percent to $5.13 billion, with a higher ARPU of $92.36 thanks to programming package price increases and higher intake from HD, DVR and NFL charges. The platform added 119,000 net subscribers in the quarter to 18.56 million, a 5-percent year-on-year increase.

DIRECTV Latin America reported net subscriber additions of 254,000, for a total of 4.59 million. Revenues were up by 47 percent to $839 million, thanks to the subscriber growth, primarily in Brazil, Venezuela and Argentina. ARPU increased by 25 percent to $62.67.