Brazilian operations boost DTVLA growth in Q2

Thursday, August 4, 2011

DirecTV Latin America's (DTVLA) solid performance during the second quarter of the year was mainly fueled by its Brazilian operations, DirecTV Group president and CEO Michael White said in a conference call with investors.

"During the second quarter, the significant subscriber growth was primarily driven by Brazil, as the net adds in that country were more than double last year's level," White said.

"Latin America by any measure continues to demonstrate tremendous momentum," he said. "We continue to see strong consumer demand for our products and services all across the continent, along with the underlined favorable economic and demographic trends."

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DTVLA posted revenues of US$1.25bn in the second quarter, up 46% from US$857mn in the year-ago period, the company said in its earnings statement.

DTVLA's Arpu was US$64.56 in the second quarter, up from US$56.98 in the same quarter in 2010. "The increase in Arpu was mostly due to price increases, higher sales of HD and DVR services, as well as favorable exchange rates, primarily in Brazil," the company said. Further, "the churn in postpaid remains lower compared to levels that we have seen in the US business," White highlighted.

During the second quarter of the year, DTVLA recorded a net addition of 472,000 subscribers, up from 415,000 in the same period in 2010.

"Our business in Latin America offers a terrific long-term growth opportunity," he added.

DirecTV owns 93% of Sky Brazil, 41% of Sky Mexico and 100% of PanAmericana, which covers most of the remaining regional countries. Sky Mexico, whose results are accounted for as an equity method investment and are therefore not consolidated by DTVLA, had some 3.59mn subscribers as of June 30, bringing the total base in the region to 10.3mn.

DirecTV Group's global revenues reached US$6.60bn in the second quarter, surging 13% year-on-year. Profits reached US$701mn, up 29%.