DirecTV 1Q profit up 10 percent, will buy back $3B shares
EL SEGUNDO, Calif. - Digital television provider DirecTV says first-quarter earnings rose 10 percent, and it will raise up to $2.5 billion of debt to buy back up to $3 billion of its own stock.
El Segundo, Calif.-based DirecTV says net income climbed to $371 million, or 32 cents per share, from $336 million, or 27 cents per share, a year ago.
Revenue climbed 17 percent to $4.59 billion from $3.91 billion, as demand for HD and DVR services drove a 14 percent rise in DirecTV U.S. sales.
Analysts surveyed by Thomson Financial expected profit of 31 cents per share on revenue of $4.47 billion.
The company will sell $1.35 billion of senior notes and borrow about $1 billion under its credit line to fund the buyback.
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AP Business Writer Jennifer Malloy