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DirecTV Adds 460,000 New Customers
It's good to be best friends with AT&T and the NFL...
by Karl Bode 02:53PM Friday May 08 2009
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:
quote:
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.


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