DirecTV boosts its subscriber base
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DirecTV Group Inc. said higher interest payments on its debt sent fourth-quarter earnings down 2%, but the satellite TV operator’s revenue jumped 17% on strong subscriber growth and the lowest rate of U.S. customer defections in eight years.
The El Segundo-based company earned $348 million in the quarter, compared with $356 million a year earlier. Per-share profit rose 1 cent to 30 cents because the company had more shares outstanding in the latest period.
Analysts polled by Thomson Financial were looking for profit of 29 cents a share.
Revenue rose 17% to $4.88 billion, exceeding Wall Street’s estimate for $4.77 billion.
DirecTV added 474,000 subscribers during the quarter, closing out the period with a total of 16.8 million subscribers, up 6% from 15.9 million at the end of the same quarter in 2006.
The company’s pace of customer defection fell during the quarter to 1.42%, DirecTV said.
DirecTV shares rose 95 cents to $24.83.
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