Kokomo, IN – (StockNewsDesk) – 11/06/2014 — The United States’ largest satellite TV provider, DirecTV, reported that its third-quarter profits were better than analysts’ expectations. Sales of the company increased nearly 5.6% to $6.51 billion. Revenue of the company saw an increase in tariffs as a result of which Average Revenue Per User (ARPU) increased by 5%. Although the company has seen a decline in its customer base, the profitability and sales of the company have remained intact. Of late, major satellite TV companies have lost customers to new entrants, like Netflix.
Speaking of numbers, DirecTV lost 28,000 customers from their customer base to new entrants who offered discounted prices for the same services. Analysts expected the customer base to increase by 66,000. Last year, the company added 139,000 subscribers. Net income of the company came in at $611 million or $1.21 a share compared to $699 million or $1.28 a share earned during last year. Excluding one-time items, the company earned $1.33 a share. This figure is better than the Street’s estimate of $1.36 a share. Revenue figures of the company increased to $8.37 billion, up 6.3%. This is above the estimates of $8.3 billion.
CBS to Introduce New Service, Upbeat on Revenue
Another satellite major, CBS provided financial figures that impressed investors. Subscription fees and content-licensing were the two streams of business that lifted revenue of the company above expectations. However, the positive effect was slightly diluted because of lower advertising revenues. As a group, CBS Television and CBS films reported sales of $1.91 billion, up 1.4%. The cable network segment of the company grew 4.7% to $624 million. Sales in this segment are attributable to Showtime Networks, CBS Sports Network and Smithsonian Networks. Licensing of original series also helped the company increase revenues. As a company, CBS reported revenue of $3.37 billion, up 2%. Revenue came from licensing and distribution which grew $1.4 billion, up 4.3%.
CBS reported profits of $1.64 billion or $3.03 a share. However, the profit included a gain of $1.56 billion attributable to CBS Outdoor Americas Inc. This is well above last year’s figure of $494 million or 80 cents a share. The company will be launching a new service through which the customers will get a Live Streaming service in 2015. As of now, the company has already launched a channel with the name of CBSN. This channel will offer streaming news service for its broadcast networks. For this facility, CBS has also entered into a deal with Sony Corporation for the video services segment.