DIRECTV 2010 Annual Report Download - page 62

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DIRECTV
operating profit before depreciation and amortization, lower depreciation and Operating profit before depreciation and amortization. The following table
amortization and a continued decline in weighted average common shares presents our operating profit (loss) before depreciation and amortization by
outstanding due to anticipated share repurchases, partially offset by increased segment:
income tax and interest expense. Change
Operating profit (loss) before depreciation and
amortization by segment: 2010 2009 $ %
RESULTS OF OPERATIONS (Dollars in Millions)
Year Ended December 31, 2010 Compared with the Year Ended December 31, DIRECTV U.S. .................... $5,216 $4,685 $ 531 11.3%
2009 DIRECTV Latin America .............. 1,164 697 467 67.0%
Sports Networks, Eliminations and Other .... (2) (69) 67 NM
Consolidated Results of Operations
Total operating profit before depreciation
We discuss changes for each of our segments in more detail below. and amortization ................. $6,378 $5,313 $1,065 20.0%
Revenues. The following table presents our revenues by segment: The increase in total operating profit before depreciation and amortization was
Change due to higher gross profit from the increase in revenues, lower charges in 2010 for
Revenues by segment: 2010 2009 $ % foreign currency transactions at DIRECTV Latin America, offset by higher
(Dollars in Millions) subscriber acquisition costs and upgrade and retention costs at both DIRECTV U.S
DIRECTV U.S. .................. $20,268 $18,671 $1,597 8.6% and DIRECTV Latin America and higher general and administrative expenses at
DIRECTV Latin America ............ 3,597 2,878 719 25.0% DIRECTV U.S.
Sports Networks, Eliminations and Other . . 237 16 221 NM* Operating profit. The following table presents our operating profit (loss) by
Total Revenues .................. $24,102 $21,565 $2,537 11.8% segment:
Change
* Percentage not meaningful. Operating profit (loss) by segment: 2010 2009 $ %
The increase in our total revenues was due to subscriber growth and higher (Dollars in Millions)
ARPU at DIRECTV U.S., subscriber growth at DIRECTV Latin America, as well DIRECTV U.S. .................... $3,290 $2,410 $ 880 36.5%
as the revenue generated by DIRECTV Sports Networks which we acquired in DIRECTV Latin America .............. 623 331 292 88.2%
November 2009. Sports Networks, Eliminations and Other .... (17) (68) 51 NM
Total operating profit ............... $3,896 $2,673 $1,223 45.8%
The increase in our operating profit was primarily due to the changes in
operating profit before depreciation and amortization discussed above and lower
depreciation and amortization expense at DIRECTV U.S. due to the completion of
amortization of intangible assets and declining subscriber equipment capitalization,
partially offset by increased depreciation at DIRECTV Latin America due to
increased subscriber equipment capitalization.
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