DirecTV Group Reports Third Quarter Net Loss of 1 Billion Due to Satellite Projects 

EL SEGUNDO, Calif., Nov. 3/Satnews Daily/ ¾ The DirecTV Group, Inc. posted a loss of $1 billion because of a one-time charge to pay for three new satellites for $1.5 billion and because of sharply higher costs to attract and hang on to subscribers.

DirecTV said subscribers rose 33% to 1,077,000 and average monthly revenue per subscriber rose by 4% to $66.46 resulting in an increase in third quarter revenues by 20% to $2.86 billion.

But the DirecTV Group reported a third quarter 2004 operating loss of $1.55 billion and net loss of $1.01 billion compared with an operating profit of $8 million and a net loss of $23 million in the same period last year. DirecTV said a $903 million non-cash after-tax impairment charge related to the Spaceway contributed to the big third quarter net loss.

"The strong momentum DirecTV U.S. enjoyed in the first half of this year carried over to the third quarter as DirecTV, for the first time ever, added more than 1 million gross owned and operated customers in a quarter," said Chase Carey, president and CEO of The DirecTV Group. "This unprecedented demand contributed to a record 484,000 net owned and operated subscribers, marking the fourth consecutive quarter in which we have added more than 400,000 net new customers."

DirecTV plans to launch four new satellites during the next three years to increase its high-definition and other programming.

Carey said DirecTV made considerable progress last quarter with the acquisition of the subscribers of Pegasus Satellite Television (Pegasus) and the National Rural Telecommunications Cooperative (NRTC).

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