Currency Change Hurts DirecTV’s QuarterTuesday, May 6, 2014
DirecTV on Tuesday said that its first-quarter profit fell 19 percent largely because of currency fluctuations in part of its key Latin American market. Adjusted net income did beat analysts’ expectations, however.
The El Segundo satellite TV provider reported net income of $561 million ($1.09 a share), compared with $690 million ($1.20) in the same period last year.
Revenue rose 4 percent to more than $7.8 billion. Revenue from its DirecTV Latin America unit, which has 11.9 million subscribers and accounts for 21 percent of total revenue, remained flat at $1.72 billion. In addition, the unit took a $281 million charge related to Venezuela’s recent currency devaluation.
Excluding that charge and other one-time items, the company had a profit of $1.63 a share. Analysts surveyed by Thomson Reuters on average expected adjusted net income of $1.50 a share on revenue of more than $7.9 billion.
DirecTV added a net 12,000 subscribers in the United States to end the quarter with 20.3 million subscribers. About 361,000 net subscribers were added in Latin America. Both growth rates were lower than a year earlier.
Shares closed up $1.90, or 2 percent, to $81.74 on the Nasdaq.