DirecTV Sees 18% Increase In Q3 Revenue Compared To Last Year

DirecTV “blew past [Q3] revenue projections,” as more customers opted for HD and DVR packages, according to Paul Bond of the HOLLYWOOD REPORTER. DirecTV saw an 18% rise in revenue to $4.33B, beating analysts’ projections of $4.25B. However, net income was $319M, down from $370M a  year ago. The provider added 240,000 subs to bring its overall total to 16.6 million, a 6% increase from Q3 ’06, and the amount of subs that dropped the service fell from 1.8% last year to 1.6%. Goldman Sachs analyst Anthony Noto said, “Cable is losing the battle for churn despite having the triple bundle [of cable, Internet and phone] as a weapon.” However, DirecTV President & CEO Chase Carey said that the company is “rolling out too many trucks in order to handle upgraded services and repairs, and rising programming fees for the NFL, Fox News Channel and Showtime all sliced into profits” (HOLLYWOOD REPORTER, 11/8).

DEPENDENT ON U.S. ADVERTISING: News Corp. Chair & CEO Rupert Murdoch said that 23% of the company’s revenue “depends on U.S. advertising.” Noting that over 90% of Super Bowl XLII ad inventory is already sold, Murdoch said, “Advertising at News Corp. remains stronger than ever.” However, News Corp. President & COO Peter Chernin said that if the Writers Guild of America strike “lasted for eight months to a year, it could start affecting the company’s financials” (HOLLYWOOD REPORTER, 11/8).