Liveblogging the DIRECTV 1Q12 Conference Call

Here we go! Disclaimers are out of the way.

Now they’re talking about Latin America. More than 1 million Latin American subs, net adds of 600k. The majority of growth came from this segment.

Colombia is a key part, Sky Brazil is also very strong. OK now to DIRECTV US.

OK, “growth is in line.” This was a big year for changing their offer structure.

They are talking about the advanced receiver service fee changes and package changes. Stuff we already know. They “successfully implemented their price increase.”

Churn is the lowest in 3 years, at 1.44%.

Trying to balance out top line and bottom line growth this year, they spent too much on retention.

TV Everywhere will stream outside the home by end of year

There was also a mention of a next-generation home media center launch. I don’t know if he means HR34 or something newer.

More results from “Bruce” on Latin America growth.

A lot of financials. This is, after all, a financial call.
Now there are 1 million DVR users in Brazil. 27% of Panamericana customers have some sort of advanced services.
38% improvement in revenue in Latin America, if you include exchange rates.
Expenses in Latin America were also higher.

He’s going country by country on this.

Sky Mexico has also been strong.
“Pat” is now talking about DIRECTV US.

Revenues are up, churn is down.

ARPU is up 3.6% (avg revenue per user)
PPV movie revenue is strong, due to the connected home strategy.

Premiums did better than anytime since 2008.

Total PPV revenue declined since there was not a major boxing event.

First quarter growth is modest but meets expectations.

Competition is up and programming costs keep rising. As a result they are tightening up on credit policies and increased retention spending to improve subscriber quality.

This is the lowest churn (1.44%) in three years.

Rising programming costs keep making it harder to make money, especially the Fox and NFL contracts.
Now we’re back into the hard core financial stuff. If you want that stuff, read the report:…ame=671207.pdf
Call center volume is down. He admits it’s partially due to a mild winter, but he also says that his call centers are doing a better job getting it right.
Wow, there’s a lot I don’t understand about accounting. I was hoping for a nugget or two about the tech stuff as we’ve seen in previous year.
Sounds like they’re repurchasing their own stock and restructuring their capital.
Now we’re going to Q&A. I guess that’s it.

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Stuart Sweet
Stuart Sweet is the editor-in-chief of The Solid Signal Blog and a "master plumber" at Signal Group, LLC. He is the author of over 8,000 articles and longform tutorials including many posted here. Reach him by clicking on "Contact the Editor" at the bottom of this page.