DirecTV reported stronger than expected first quarter
results Tuesday, driven by continued robust growth at its Latin American
operations and a steady showing in the United States.
DirecTV added a total of 604,000 net new subscribers in the
period, the bulk of that growth (583,000) occurring in Latin America. But
analysts were also encouraged by steady growth in the U.S. - the 21,000
domestic net new additions were only slightly below consensus estimates of
25,000 additions, and revenue and cash flow growth soundly beat predictions.
"[The] U.S. results indicate [DirecTV's] strategy to
selectively manage gross [additions], focus on retention and grow ARPU is
paying off," wrote Morgan Stanley analyst Ben Swinburne in a research note.
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