DIRECTV (NASDAQ:DTV), the largest satellite-TV service provider in the United States reported higher-than-expected revenue for the fourth quarter and its board of directors approved a $3.5 billion stock buyback. The shares of the company gained 2.93% to $75.08 per share on Thursday.
During the fourth quarter, DIRECTV (NASDAQ:DTV) said its revenue increased 7% to $8.59 million, higher than the $8.48 billion consensus estimate of Wall Street analysts based on data compiled by Bloomberg.
According to the satellite-TV service provider, its operating profit increased 3% to $1.33 billion from the same period a year ago. Its net income was $810 million or $1.53 earnings per diluted share. During the same quarter a year earlier, DIRECTV (NASDAQ:DTV) posted $942 million net income or $1.55 diluted earnings per share.
For the full year 2013, the satellite-TV service provider delivered $31.75 billion revenue, up by 7% from $29.74 billion in the previous year. Its operating profit was $8.1 billion and net income was $2.99 billion or $5.42 earnings per diluted share. In 2012, DIRECTV reported $2.94 billion net income or $4.58 earnings per diluted share.
In a statement, Mike White, president and CEO of DIRECTV (NASDAQ:DTV) said, “We exit 2013 with good momentum and look to build in that momentum in 2014 with a strong comprehensive strategy dedicated to building lifelong customer relationships while driving revenue and profit growth over the long term.”
DIRECTV (NASDAQ:DTV) aid it added 94,000 pay-TV subscribers in the United States and 231,000 subscribers in Latin America during the fourth quarter. The company has almost 38 million customers across the Americas by the end of 2013.
According to White, the company is well-positioned to continue strengthening its competitiveness in the U.S. marketplace as the premier provider of video services by advancing its customer franchise while delivering mid-single digit top and bottom line growth this yea
Prior to the release of the financial results of DIRECTV (NASDAQ:DTV), David Heger, an analyst at Edward Jones & Co. commented, “Stronger U.S. subscriber growth is a positive and means they are taking market share from cable.”
Heger added that Dish Network Corp (NASDAQ:DISH) “is likely to have the same results.” The company will report its financial results before the opening of the U.S. stock markets tomorrow.
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