DIRECTV 2009 Annual Report Download - page 64
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DIRECTV
In 2010, we expect capital expenditures to approximate capital expenditures reported for 2009.
DIRECTV Latin America. In 2010, we expect revenue growth of roughly half of the growth
experienced in 2009. Although we anticipate net subscriber additions to be similar to 2009, this growth
will likely be partially offset by lower ARPU in the region caused by the recently announced
devaluation of the Venezuelan currency, discussed in more detail below under ‘‘Liquidity and Capital
Resources’’.
As a result of the anticipated growth in revenues and the economies of scale in Latin America, in
2010 we expect operating profit before depreciation and amortization growth of more than 20%.
In 2010, we expect capital expenditures in Latin America to exceed 2009 capital expenditures due
to anticipated higher gross subscriber additions and increased sales of advanced products.
DIRECTV. At the consolidated DIRECTV level, we anticipate free cash flow, or cash provided by
operating activities less capital expenditures, to grow in the mid-single digit percent range. The
improvements in operating profit before depreciation and amortization are expected to be partly offset
by an increase in cash paid for income taxes due to the anticipated increase in pre-tax earnings and the
cessation of benefits realized during the past two years associated with two Federal economic stimulus
programs in the U.S. as well as higher capital expenditures at DIRECTV Latin America and higher
expected interest expense.
2010 diluted earnings per common share is expected to more than double compared to 2009. The
expected increase in 2010 is due to the anticipated growth in operating profit before depreciation and
amortization, lower depreciation and amortization expense, and a continued decline in weighted
average common shares outstanding due to anticipated share repurchases.
RESULTS OF OPERATIONS
Year Ended December 31, 2009 Compared with the Year Ended December 31, 2008
Consolidated Results of Operations
We discuss changes for each of our segments in more detail below.
Revenues. The following table presents our revenues by segment:
Change
Revenues by segment: 2009 2008 $ %
(Dollars in Millions)
DIRECTV U.S. ..................................... $18,671 $17,310 $1,361 7.9%
DIRECTV Latin America .............................. 2,878 2,383 495 20.8%
Sports Networks, Eliminations and Other ................... 16 — 16 N/A
Total Revenues ..................................... $21,565 $19,693 $1,872 9.5%
The increase in our total revenues was due to subscriber growth and higher ARPU at DIRECTV
U.S. and DIRECTV Latin America.
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