DIRECTV's Deluxe Development: Fool by Numbers

On Nov. 8, satellite TV service provider DIRECTV Group (NYSE: DTV  ) released Q3 2006 earnings for the period ended Sept. 30.

  • DIRECTV U.S. added 750,000 net subscribers over the past 12 months, and the total customer count now stands at 15.7 million. That 4.5% subscriber growth translated into a beefy 13% total sales boost, and GAAP earnings went on an absolute tear.
  • The dramatic improvement in operational efficiency came from tight cost control, and more specifically, $455 million of customer acquisition costs compared with $708 million last year. Keeping costs fixed while growing revenues is a great recipe for profits.
  • The company prefers to fuel its business with pure cash and has not taken on any new debt in the past year.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005







Net Profit










Diluted Shares





Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005


Gross Margin




Operating Margin




Net Margin




*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights


Q3 2006

Q3 2005


Cash + ST Invest.




Accounts Rec.









Q3 2006

Q3 2005


Accounts Payable + Accrued Exp.




Long-Term Debt




Learn the ways of the balance sheet.

Cash Flow Highlights

Q3 2006

Q3 2005


Cash From Ops.




Capital Expenditures




Free Cash Flow




Find out why Fools always follow the money.

Related Companies:

  • EchoStar Communications (NYSE: DISH  )
  • Comcast (Nasdaq: CMCSA  )
  • Time Warner (NYSE: TWX  )
  • TiVo (Nasdaq: TIVO  )

Related Foolishness:

Time Warner and TiVo areMotley Fool Stock Advisorrecommendations.Find more great investments with a free 30-day trial to our flagship service, where the Gardner brothers compete and everybody wins.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so for more of our in-depth discussion of what the numbers mean.

At the time of publication, Fool contributorAnders Bylund had no position in any company mentioned. Fool rules are here.

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