DirecTV Logs Q1 Subscriber Gains But Net Income Drops

DirecTV added 279,000 new subscribers in the first three months of the year, but profit for the first quarter dropped on higher programming costs, lower margins in Brazil and expenses related to its pending merger with AT&T.

DirecTV CEO Mike White said the satcaster expects the AT&T transaction to close by the second quarter of this year.

Revenue climbed 4% to $8.14 billion thanks to gains in the U.S. while adjusted net income declined to $730 million, from $842 million in the year-ago quarter. DirecTV said it had its lowest monthly churn rate in the U.S. in six years, at 1.37% with a total of 60,000 net new customers added.

“Our U.S. business generated another strong quarter of results, further demonstrating our company’s strong execution, as well as product and brand leadership,” said Mike White, president-CEO of DirecTV. “In the quarter, our focus on high-quality new customers combined with an improving economy to enable our lowest first quarter churn rate in six years.”

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