A three-part review on DIRECTV’s 2007 Q4-Conference Call
Part 2-2008 Outlook
While DIRECTV did not go into much depth about what is on tap for 2008, some key points were emphasized. 
The company is holding its “Investor Day” on February 28th, so more details on 2008 will certainly come out at that time. The five points brought out by CEO Chase Carey on the call were:
- Major improvements on margin and key costs- Throughout the call, several references were made to their improvements in getting costs under control. The company is predicting improved cash flow this year.
- Strong top line and revenue growth- While subscriber growth is predicted to slow, partly due to the loss of the Bell South partnership, DIRECTV expects to continue with double-digit revenue growth. Average revenue per subscriber, or ARPU, came in at $87.40 per month, and is expected to continue upwards.
- Advanced Product- As mentioned in our Part 1 review, HD and DVR demand continue to be the focus for DIRECTV. This will continue, as more people look to hook up Plasma and HDTV’s.
- Capital Expenditures- DIRECTV predicts a reduction “down a couple hundred million dollars” excluding set-top boxes.
- Latin America- CEO Carey predicts continued success, building on this year’s numbers.
Latin America was a big growth engine in 2007. Net subscriber additions for Q4 2007 were about 200,000, more than double over Q4 2006, and monthly churn was a low 1.35%. ARPU grew 18%, and revenue overall was up 40%. The company was pleased with the performance across a number of markets including Brazil, Venezuela, Colombia, and Argentina.
More details on 2008 initiatives will certainly follow on DIRECTV’s Investor Day, which will be held on February 28th.
Part 3-Questions from Wall Street Analysts
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