DirecTV Latin America owns approximately 93% of Sky Brazil, 41% of Sky Mexico and 100% of PanAmericana, which covers most of the remaining countries in the region. Sky Mexico, whose results are accounted for as an equity method investment and therefore are not consolidated by DTVLA, had approximately 3.59 million subscribers as of June 30, 2011 bringing the total subscribers in the region to 10.29 million at the end of the second quarter of 2011.
"Consolidated revenue accelerated to 13% exceeding both last year and first quarter growth rates as DirecTV Latin America's continued record subscriber additions coupled with strong ARPU growth propelled a 46% increase in DTVLA revenues while DirecTV U.S. delivered another solid quarter of industry leading revenue growth of 7%," said Mike White, President and CEO of DirecTV.
Highlights of the Second Quarter 2011 Results:
– Revenues for DirecTV Latin America increased 46% to US$1.25 billion in the quarter principally due to the strong subscriber growth and a 13.3% increase in ARPU. The increase in ARPU to US$64.56 was mostly due to price increases, higher sales of HD and DVR services as well as favorable exchange rates, primarily in Brazil. Excluding the impact of exchange rates, DTVLA ARPU increased 7.9%.
– DirecTV Latin America's second quarter 2011 OPBDA increased 60% to $423 million and operating profit increased 72% to $241 million primarily due to the gross profit associated with higher revenue.
– The increase was partially offset by higher subscriber acquisition costs associated with the gross additions as well as increased upgrade and retention spending driven by demand for advanced equipment.
DIRECTV Latin America gross additions increased 25%, 823,000 new subscribers in the quarter due to increased demand from the middle market segment in Brazil. The increase in gross additions and a slight decline in post-paid churn to 1.44% driven by lower churn in Brazil and Venezuela, resulted in record net additions of 472,000, representing a 14% increase over last year's second quarter results which benefited from the 2010 World Cup soccer tournament.
DirecTV Latin America, sparked by a rapidly growing consumer class throughout the continent, added 2.4 million customers to the SKY Brasil and DIRECTV platforms over the past two years. SKY Mexico has nearly doubled in size by adding an additional 1.8 million customers over the same time frame, bringing the total, including Mexico, to more than 10.6 million customers in the region.
DirecTV reported global increases in second quarter 2011 revenues of 13% to $6.60 billion, operating profit before depreciation and amortization(1) (OPBDA) of 13% to $1.85 billion and operating profit of 22% to $1.23 billion compared to last year's second quarter. DIRECTV also reported that second quarter net income increased 29% to $701 million and diluted earnings per share grew 52% to $0.91 compared with the same period last year, excluding the $0.18 per Class A common share impact from the Malone transaction(2) in the second quarter of 2010. The revenues in Q2 were of US$6.60 billion.
Since the beginning of Q3 2009, DIRECTV added 1.1 million customers in the U.S., ending the second quarter of this year with more than 19.4 million customers.