Hughes Electronics Corporation and its subsidiary, DirecTV Holdings LLC ("DirecTV U.S."), have announced that DirecTV U.S. is increasing its full-year guidance for net subscriber additions and revenues as net new subscribers hits 1 million plus for the year.
"Due primarily to DirecTV U.S.' attractive consumer promotions, including the very popular NFL SUNDAY TICKET, along with solid churn management consistent with its third quarter expectations of approximately 1.6 percent per month, DirecTV U.S. expects to add about 320,000 net new owned and operated subscribers in the quarter.
Driven by these results and the expected continued strong demand for the remainder of the year, as well as achieving its full-year churn target of 1.5 percent per month, DirecTV U.S. is increasing its full-year 2003 guidance for net owned and operated subscriber additions to approximately 1.05 million, compared with the prior guidance of approximately 900,000," said Jack A. Shaw, president and chief executive officer of HUGHES.
Roxanne S. Austin, president and chief operating officer, DirecTV U.S., added, "We are also increasing our revenue guidance for the third quarter and full-year to approximately $1.93 billion and $7.6 billion, respectively, due to the higher demand for our exclusive NFL SUNDAY TICKET package, local channels and multiple set-top boxes."
"In addition to the substantial growth we expect to attain at the top line, we continue to manage our costs and improve margins to drive results at the bottom line," Austin continued.
"DirecTV U.S. is maintaining its third quarter and full year guidance for all other financial and operating metrics, including operating profit before depreciation and amortization and operating profit, despite the significantly higher marketing costs associated with the stronger than anticipated subscriber growth in the quarter and full year."
HUGHES' regularly scheduled quarterly earnings conference call will be held Oct 14, 2003 at 2pm ET.
