On the back of record results, DTH provider DirecTV has announced that it is to undertake a US$3.5bn share buyback programme.
The company reported full year 2009 operating profit (before depreciation and amortisation) of US$5.31bn on the back of…
On the back of record results, DTH provider DirecTV has announced that it is to undertake a US$3.5bn share buyback programme.
The company reported full year 2009 operating profit (before depreciation and amortisation) of US$5.31bn on the back of consolidated revenues of US$21.6bn, up almost 6% and 10% respectively. As of December 31, 2009, DirecTV US had 18.56 million subscribers representing a 5% increase over the year.
DirecTV also has plenty of spare money to fund the buyback plan, with full-year cash flow, before interest and taxes, increasing 22% year-on-year to US$3.22bn and free cash flow increasing 40% to a record US$2.36bn.
However, operating profit declined 1% to US$2.67bn primarily associated with the capitalisation of customer equipment under the DirecTV and DirecTV Latin America lease programs. This, as well as a US$491m pre-tax charge related to the Liberty Entertainment merger, led to net income declining 38% to US$942m and diluted earnings per share fell 31% to US$0.95 in 2009.
Over the past few years DirecTV has followed an aggressive share buyback plan, repurchasing approximately US$1.7bn of shares in 2009 and US$3bn in 2008. Over the past four years the company has acquired almost US$10bn of its own shares.
