DIRECTV Reports 4Q Gains

EL SEGUNDO, February 7: The DIRECTV Group’s fourth quarter
revenues increased 16 percent to $4.18 billion and net profit more than doubled
to $356 million.

“Fourth quarter results point to the continuing progress and
operating strength at DIRECTV U.S. highlighted by strong revenue and cash flow
growth,” said Chase Carey, the company’s president and CEO. “These results were
driven by improved operating metrics including subscriber growth, churn, ARPU
and subscriber acquisition costs, a reflection of the competitive strength of
our business.”

For the year, meanwhile, revenues were up 12 percent to
$14.76 billion driven principally by subscriber growth at DIRECTV U.S. and
DIRECTV Latin America. Net income increased to $1.42 billion.

At DIRECTV in the U.S., churn for the quarter fell from 1.7
percent to 1.57 percent and net subscriber additions were up by 38 percent to
275,000. The total number of DIRECTV U.S. subscribers as of December 31, 2006,
was 15.95 million, an increase of 5 percent. Revenues rose 12 percent to $3.83
billion and ARPU rose from $75.53 to $80.70. Operating profit more than doubled
to $614 million. For the year, meanwhile, revenues increased 13 percent to
$13.74 billion and operating profit more than doubled to $2.35 billion.

DIRECTV spent much of 2006 consolidating its business in
Latin America with the Sky platforms. DIRECTV Group now owns approximately 74
percent of the merged business in Brazil and 41 percent of Sky Mexico. Last
month, meanwhile, it acquired Darlene’s 14 percent ownership in DIRECTV Latin
America, giving it 100 percent control of the pan-regional operation. Revenues
at DIRECTV Latin America grew by 86 percent to $354 million from $190 million.
There were 77,000 net subscriber additions in the quarter, and churn fell from
1.76 percent to 1.29 percent. The platform narrowed its loss from $21 million to
$3 million. The total number of DIRECTV subscribers in Latin America as of
December 31, 2006, increased 70 percent to 2.71 million. For the year, revenues
increased 37 percent to $1.01 billion and operating profit rose to $79 million.