DirecTV Adds 460,000 New Customers
It's good to be best friends with AT&T and the NFL...
Laughing at the recession, DirecTV added 460,000 new subscribers in the first quarter
, 67% more than a year ago. The company noted their churn rate was just 1.3% (a ten year low), despite added competition from TelcoTV, First quarter 2009 revenues increased 7% to $4.90 billion with $201 million in net income. Industry quote machine and Sanford Bernstein analyst Craig Moffett loves what he sees and thinks DircTV would make a tasty acquisition target for AT&T and Verizon
Bernstein Research senior analyst Craig Moffett described DirecTV as a safe choice for investors – its management is first rate as is its product and affluent customers. Plus, it has AT&T’s recent distribution agreement working for it. Coupled with its relatively simplified ownership structure announced earlier this week, Moffett said it has a "dollop of acquisition potential should AT&T or Verizon ever decide they’re bored simply being telecommunications companies."
Of course Moffett thinks network upgrades are stupid
and the incredibly profitable wireless sector is on the brink of collapse
, so take that comment with a grain of salt. DirecTV has been a rumored acquisition target for AT&T for as long as we can remember, but aside from a short-lived stock bump, nothing ever comes of it. Where are the new customers coming from? Many are coming from Dish, who AT&T left standing by the curbside
earlier this year.