Two of the nation's bigger cable providers just reported their quarterly results, and both lost subscribers without it hurting the company's bottom line. DirecTV revealed that it lost 52,000 customers in the quarter — but revenues increased nine percent year-over-year to $7.22 billion, while operating profit grew 15 percent to $1.4 billion. The US customer loss (which is being reported by Investors Business Daily as the first US customer loss in the company's history) was offset by major customer growth in Latin American, where DirecTV pulled in 645,000 new subscribers.
DirecTV actually claimed its customer losses came from "greater focus on higher quality subscribers and stricter credit policies" — as such, US ARPU increased to $94.40 for the quarter, up four percent from one year ago. It doesn't look like DirecTV is having any issues with cord-cutters — just as Time Warner's CEO claimed yesterday that he hasn't seen any evidence of a major cord-cutting movement as HBO and Cinemax subscribers topped 100 million for the first time.
Time Warner Cable had an even tougher quarter from a subscriber perspective —the company shed 169,000 video customers, but saw video-related revenues grow 4.5 percent year-over-year. However, costs related to the acquisition of Insight and NewWave brought total video revenues down from $2.7 billion to $2.6 billion, which represented a one percent decline compared to Q2 2011.Total revenues increased 5.4 percent to $9.3 billion, helped by a seven percent increase year-over-year from the high-speed internet arm of the business. Similar to DirecTV, Time Warner noted that video revenues were helped by "greater percentage of subscribers purchasing higher-priced tiers of service" — it sounds like both providers are making do with fewer customers on more expensive packages.