The DIRECTV Group, Inc. (DTV) reported revenues of $5.47 billion in the third quarter of 2009. On a geographical basis, revenues from United States grew 9% to $4.7 billion due to solid subscriber and average revenue per unit (ARPU) growth. The company added 136,000 net subscribers to its customer base in the United States primarily due to the addition of AT&T (T) as a marketing partner and record demand for company’s premium services. ARPU of $85.32 increased 2.1% as programming package price increases, as well as higher service fees for certain services, were partially offset by more competitive promotions for both new and existing customers. The company’s business in Latin America also demonstrated solid performance, posting a 16% increase in revenues and expanding its customer base to 162,000. This was driven by continued subscriber growth throughout the region, which more than offset the unfavorable impact ...

• Cisco (NASDAQ:CSCO) reported non-GAAP earnings of $1.8 billion or 31 cents a share, beating estimates of 29 cents, but cautioned first quarter sales likely to fall 15-17% from a year ago, which would reflect a 1-3% sequential quarterly increase, and margins likely to decline

• BankofAmerica/Merrill (NYSE:BAC) upgraded Freeport McMoRan (NYSE:FCX) to "buy"

• Citigroup (NYSE:C) upgraded American Express (NYSE:AXP) shares to "buy"

• Goldman Sachs' (NYSE:GS) removed Dr. Pepper Snapple (NYSE:DPS) from its conviction buy list

• Hyatt Hotel filed a $1.15 billion IPO; its shares will be listed under the symbol "H"

• Williams Cos (NYSE:WMB) reported second quarter adjusted earnings of 24 cents a share, 8 cents better than expected. The company expects fiscal 2009 earnings of 70 cents to 90 cents a share

• El Paso (NYSE:EP) reported adjusted second quarter earnings of 25 cents, 4 cents above estimates, versus 39 cents a year ago on revenues of $973 million versus

...

DIRECTV (DTV) is set to continue generating healthy free cash flow and earnings growth, with reduced cap ex requirements, healthy ARPU, and vigorous growth in its Latin American operations.

The company's HD lead should defend its market share, bolster ARPU, and help stem decelerating subscriber growth. We think the HD rollout with the RBOCs as partners will defend DTV's market share against cable s ability to offer video, voice and data ("triple play"), which together with recently tightened credit standards, have been impeding subscriber growth.

Longer-term, we view the IP-TV roll-outs by AT&T and Verizon a serious threat, but one that won't be fully realized for several years.

Near-term, we expect satellite and cable TV will be relatively defensive recession investments, suffering less subscriber attrition in the recession than other forms of entertainment, and DIRECTV in particular should benefit from its recent efforts to weed out its lower-end customers most likely to churn.

...

Subscribers are leaving their wallet with El Segundo-based Direct TV DIRECTV Group, Inc. (Public, NASDAQ:DTV) thanks to their complete domination of the HD channel lineup, which now stands at 95 - more than any other provider. We’re going through a recession right now in the United States, and rather than spending $20 to drive to the movies, another $20 for tickets and $15 for a Soda and some popcorn, most consumers are opting to stay home watching movies in High Def – and paying a comparable price for their monthly ...