DIRECTV 2011 Annual Report Download - page 17

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I’m pleased to report that DIRECTV had a terrific year.
Our financial results in 2011 met or exceeded both internal
and external expectations. We gained market share in
both the U.S. and Latin America, and we launched a
number of new strategic initiatives that will keep us on
track to deliver profitable growth and solid shareholder
returns in the years ahead.
Our industry-leading growth in the Americas underscores the continued
strong consumer demand for our products and services despite a tough
economic year globally and in the U.S., as well as a hyper-competitive
environment and the expansion of new Internet-based entertainment services.
We continued to break records last year with the largest annual net
customer gain in our history, acquiring nearly 3.7 million customers in the
U.S. and Latin America and furthering our position as the world’s largest
pay-TV provider. We capped 2011 with nearly 32 million customers across
the Americas and more than $27 billion in consolidated revenue.
In addition, earnings per share grew by more than 50 percent, driven by
higher operating profit and our share repurchase program. Outstanding
results across both platforms were reflected in a 7 percent gain in our stock
price for the year, outpacing both the Dow and the S&P.
BATTLING HEADWINDS IN THE U.S.
In the U.S., we set an annual record by attracting 4.3 million new customers,
increasing revenues by 8 percent, while operating profits for the year grew
13 percent to $3.7 billion.
Thanks to our brand leadership, unique products and services, and our
exclusive NFL SUNDAY TICKET™
, we grew market share in most regions in
the country, finishing the year with close to 19.9 million customers. In 2012,
we are closing in on yet another major milestone as we expect to surpass
20 million customers.
Our fourth quarter was one of the busiest in our history as we began
rolling out a number of new products and services that will further transform
the DIRECTV entertainment experience for our customers, including the
launch of “Nomad,” which allows consumers to take their favorite shows with
them wherever they go; live in-home streaming to the iPad; and our new HD
User Interface, which makes programming search and discovery the fastest
and easiest in the industry.
I’m extremely proud of what we accomplished in 2011 given the tough
economic and competitive climate. We are successfully executing the strategies
we outlined over a year ago and have strong momentum going into 2012.
KEEPING OUR CORE U.S. BUSINESS HEALTHY
IN A CLIMATE OF CHANGE
In the U.S. our core business is healthy and growing. However, it’s no secret
the pay-TV business is rapidly maturing. Aggravated by a slowly recovering
economy and a still-crippled housing market, the opportunities for profitable
growth are fewer than in years past. Competition has intensified, cost-
conscious consumers are looking for more value and programmers are
demanding ever-higher rates for their content. And consumer behavior is also
shifting. The new digital revolution has spawned a growing class of consumers
CHAIRMAN’S LETTER ANNUAL REPORT 2011
Our i ndustr y-leading growth in the Americas underscores
the continued strong consumer demand for our products and
services despite a tough economic year globall y and in the U.S .