DirecTV's First Quarter Profits Less Than Anticipated
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Tuesday, 24 July 2007 |
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While net income for DirecTV has risen in a year 43%, 27 cents per share from 17 cents, or $235.2 million, first quarter profits rose less than anticipated. Analysts estimate this shortage was due to the cost to upgrade subscribers to high-definition programs. The cost of installing and acquiring higher-capacity set-top boxes was about $30 million more than expected. Chase Carey, Chief Executive is placing emphasis on high-definition sports packages and shows to compete with cable companies who offer discounts to customers who also buy phone and internet services. The price Chase Carey is paying is in the immediate short-term to better position DirecTV for a larger rollout of high definition programming later this year. DirecTV's customer base is now at 16.2 million.
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