Satellite TV provider DirecTV announced Monday another stock buyback, this time authorizing up to $1 billion in stock to be repurchased. This comes on the heels of the completion of a $1 billion repurchase plan announced in August of last year that has been completed.
While the announcement does not guarantee that the stock will be bought, the repurchase program may be suspended or discontinued at any time, the company’s management has shown that it has been serious about stock buybacks in the past. Overall, DirecTV has repurchased about $5 billion worth of its outstanding stock since 2006.
The move reflects a vote of confidence from DirecTV’s Board of Directors. The company expanded its HD offerings in 2007, ending the year with nearly 90 Hi-Def channels. With more on the way in 2008, and a subscriber base that continues to expand, the company continues to try to enhance shareholder value by repurchasing stock.
While total revenues for 2007 have not yet been publicly announced, revenues for the first nine months were roughly $12 billion, showing DirecTV’s ability to generate significant cash.
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