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DIRECTV Going Forward
With nearly 200 slides and a packed roster of speakers, DIRECTV's investors' day failed to wow Wall Street which drove the stock down by -0.78% (32¢). But that, says Collins Stewart analyst Tom Eagan, is 'likely reacting to 2011 guidance."
The DBS provider's revenue guidance calls for growth of 5% to 8% for 2011 and 5% to 8% for 2012-2013. Both estimates, Eagan suggests, are "conservative."
In looking to the future, DIRECTV sees strong growth from its Latin American operations and stronger than expected long-term US growth. Among key initiatives in the US will be:
• An increasingly segmented approach to marketing and services to match an increasingly segmented user base;
• A push to insure that 40% of DIRECTV subscribers are connected to the internet by 2013;
• The building of an in-house sales tool to allow DIRECTV to sell its own bundles "efficiently and effectively;" and
• Deploying a set of initiatives (think DIRECTV Cinema) to "own the movie segment."
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