DirecTV Misses Earnings Estimates, Walt Disney Beats

DirecTV (DTV) and The Walt Disney Company (NYSE:DIS) released the earnings results from their most recently completed quarters this morning.

DirecTV  reported earnings of $1.44 per share on $8.14 billion in revenue, an increase of 4% due to strong growth in average revenue per user. Analysts had been looking for earnings of $1.53 per share on $8.16 billion in revenue for the first quarter. In last year’s first quarter, the satellite TV provider posted earnings of $1.63 per share on $7.86 billion in revenue.

Walt Disney reported earnings of $1.23 per share, excluding items, and $12.5 billion in revenue. Analysts had been expecting earnings of $1.11 per share and $12.25 billion in revenue for the company’s second fiscal quarter. In last year’s second quarter, the entertainment giant posted earnings of $1.11 per share on $11.65 billion in revenue.

Earnings Quality DIRECTV

Key metrics from DIRECTV’s earnings report

DirecTV  added 60,000 net new customers during the quarter and recorded a monthly churn rate of 1.37%, which is the lowest in six years. Adjusted OPBDA fell to $2.12 billion, while average revenue per user increased 5.5%, mostly as a result of increases in prices for the company’s programming packages, higher lease fees for set-top boxes, higher service fees for advanced receivers, a decline in credits for new customers and increases in revenues for the company’s commercial business.

U.S. revenue increased 6% to $6.46 billion year over year as strong growth in average revenue per user combined with a bigger subscriber base. In Latin America, DirecTV  saw revenues fall to $1.635 billion, while revenue in the company’s PanAmericana and Other segment increased to $840 million.

Walt Disney reported earnings of $1.23 per share and $12.5 billion in revenue. Analysts had been expecting earnings of $1.11 per share and $12.25 billion in revenue for the company’s second fiscal quarter. In last year’s second quarter, the entertainment giant posted earnings of $1.11 per share on $11.65 billion in revenue.

Key metrics from Walt Disney’s earnings report

GAAP earnings for Walt Disney rose 14% year over year to $1.23 per share. Management cited success from Marvel’sAvengers: Age of Ultron, as the main driver of this year’s increases in earnings and revenue. The company said the film has opened at the top spot in every market it has been released in so far.

Walt Disney’s Media Networks saw revenue increase 13% year over year to $5.81 billion. The Parks and Resources business recorded a 6% increase in revenue, which grew to $1.376 billion. Studio Entertainment revenue declined 6% compared to last year to $1.685 billion. Consumer Products revenue increased 10% to $971 million, while Disney’s Interactive segment saw revenue decline 12% to $235 million.

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.