DIRECTV Group Announces First Quarter 2008 Results

- DIRECTV U.S. Revenues Increase 14% to $4.0 Billion
- Average Monthly Revenue Per Subscriber (ARPU) Grew 8.6% to $79.70
- DIRECTV Latin America Revenues Up 47% to $542 Million
- ARPU Increases 19.9% to $53.
- DIRECTV Group Operating Profit Before Depreciation and Amortization Increases 27% to $1.2 Billion
- DIRECTV U.S. Up 22% to $1.1 Billion
- DIRECTV Latin America Increases 73% to $138 Million
- DIRECTV Group Net Subscriber Additions Increase 47% to 475,000
- DIRECTV U.S. Net Subscriber Additions of 275,000 Driven by Higher Gross Additions and the Lowest First Quarter Monthly Churn Rate in 10 Years of 1.36%
- DIRECTV Latin America Net Subscriber Additions More than Double to 200,000 Due to Higher Gross Additions
- Board of Directors Approves an Increase in Share Repurchase Program to $3.0 Billion
-Liberty Media Agrees to Limit Voting Power to its Current Ownership Percentage of 47.9%

The DIRECTV Group, Inc. (NASDAQ:DTV) today reported that first quarter 2008 revenues increased 17% to $4.59 billion, operating profit before depreciation and amortization(1) (OPBDA) increased 27% to $1.18 billion and operating profit increased 17% to $657 million compared to last year's first quarter. The DIRECTV Group reported that first quarter net income of $371 million increased 10% and earnings per share increased 19% to $0.32 compared with the same period last year.

"DIRECTV's first quarter results highlight the overall operational and financial strength of our company. Our strategy of offering the best television experience to higher quality customers continues to drive superior financial results," said Chase Carey, president and CEO of The DIRECTV Group, Inc. "DIRECTV U.S. revenues were up 14% to $4.05 billion in the quarter due to a 17% increase in net subscriber additions to 275,000 coupled with an 8.6% increase in ARPU. The increased demand for DIRECTV services was primarily driven by our industry-leading content, HD, DVR and interactive services, as well as strong results from our direct sales channel. These factors along with new dealer incentives and tighter credit policies designed to attain higher quality customers contributed to a ten-year-low first quarter monthly churn rate of 1.36%.

"Operating performance was equally strong in Latin America where net subscriber additions more than doubled to 200,000 driven by a 76% increase in gross additions mostly from Brazil, Venezuela and Argentina. In addition, revenues grew 47% to $542 million and OPBDA increased 73% to $138 million primarily due to strong subscriber and ARPU growth, as well as favorable exchange rates."

Carey concluded, "We are also very pleased to announce this morning that our board of directors has approved an increase in our share repurchase program to $3.0 billion. In connection with these transactions, we have entered into an agreement with Liberty Media which limits their voting power to their current ownership percentage of 47.9%, regardless of the number of shares we buy through the repurchase program."