DirecTV stock surged Thursday morning after the top satellite TV provider said it added 327,000 U.S. subscribers during the third quarter--its best performance in five years. The gains were driven by demand for its exclusive NFL Sunday Ticket package, which had a record quarter for gross subscriber additions.
DirecTV had picked up just 26,000 subscribers during the second quarter, but its NFL promotions prompted thousands of subscribers to sign up before the start of the football season. DirecTV now counts 19.8 million subscribers.
U.S. revenues at DirecTV increased nearly 8 percent to $5.42 billion. Its average monthly revenue per subscriber increased to $92.91, up 3.6 percent from this time last year.
In 2009, DirecTV struck a $4 billion deal with the NFL to extend its exclusive distribution rights to NFL Sunday Ticket through the 2014-15 season. With its cable rivals such as Comcast and Time Warner Cable struggling to retain basic video customers--and DirecTV relying on football to grow subscribers--it may have to pay the NFL a substantial increase in license fees to keep the package.
DirecTV stock was trading higher Thursday morning following its earnings release. At 10 a.m. ET, DirecTV was trading at $46.37, up $1.51, or 3.37 percent.