DirecTV profit falls 5% even as sales rise
DirecTV Group Inc., the nation’s largest satellite-TV provider, on Tuesday reported a 5% decline in net income for the fourth quarter, even as revenue soared, because of higher customer acquisition costs and interest expenses.
DirecTV earned $332 million, or 32 cents a share, a penny shy of the average forecast of analysts polled by Thomson Reuters. Last year the company earned $348 million, or 30 cents. Revenue rose 9% to $5.31 billion.
The El Segundo company expects to roll out a “whole-home” digital video recording service starting in the second quarter that will enable customers to record programs on a DVR in one room and watch them in other areas of the house on TVs hooked up to linked non-DVR set-top boxes.
DirecTV also plans to partner with cellphone companies to offer wireless options.
Its shares fell 28 cents, or 1.2%, to $22.30.
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