Rising Costs Squeeze DirecTV Profits

13 August 2007

EL SEGUNDO, California: US satellite television operator DirecTV Group has posted a 2% drop in second quarter earnings after a sharp rise in operating costs. Demand for its high-definition services increased, however.

Net income slipped to $448 million (€327m; £221.6m), from $459m. Revenue rose 17% to $4.14 billion, higher than analysts' expectations.

The company had 16.3m subscribers at the end of the second quarter, up 5% year-on-year.

A proposed deal to swap News Corporation's 38% stake in DirecTV with Liberty Media is expected to be sealed by September.

Data sourced from Wall Street Journal Online; additional content by WARC staff