US subscriber net additions slowed in Q1 2013 for satellite MVPD DIRECTV, but revenues and profit were up. Adjusted results were up on a global basis as well, although events in Venezuela had a palpable impact on reported results.
Overall results, adjusted, included an 8% revenue gain to $7.58B, a 10% OPBDA gain to $2.09M, and adjusted operating profit was up 8% to $1.4B. Adjusted earnings per share soared 34% to $1.43.
However, a $166M pre-tax, $136M after-tax charge related to the February devaluation of the Bolivar in Venezuela brought many of these percentages way down on an as-reported basis. OPBDA was up 1% to $1.92B taking the Bolivar situation into account, and reported operating profit was down 5% to $1.24B.
In the United States, revenue was up 5% to $5.79B, and OPBDA was up 8% to $1.52B. The company picked up 21K new subs, substantially lower than the 81K picked up in Q1 2012 – DTV said the reason was partly that it was focusing on enlisting higher-quality subscribers, installing stricter credit policies and in addition was facing stiffer competition.
DTV’s Mike White commented, “Building on the momentum of one of the largest transitional years in our history, DIRECTV delivered another strong quarter of operating and financial results. Our industry leading revenue growth of 8% continues to be driven by the strength of our premier brands and popularity of our differentiated product and service offerings across the Americas, as well as our ability to profitably grow ARPU in a challenging U.S. operating environment. At the same time, our adjusted OPBDA margin grew as we remain focused on achieving operational excellence through disciplined expense management and productivity initiatives, while we continue to return cash to shareholders through stock repurchases at an industry leading clip.”
