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Directv In the Philippines. By: Rory Schneider, Mark Zabierek , Stephen Pokora, Kent Taylor, Brett McLaren. A Foreign Direct Investment Analysis. DIRECTV at a glance…. 2009 Results $21.6B in Sales $2.4B in FCF Key Metrics Growth in Subscriber Base Growth in ARPU.
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Directv In the Philippines By: Rory Schneider, Mark Zabierek, Stephen Pokora, Kent Taylor, Brett McLaren A Foreign Direct Investment Analysis
DIRECTV at a glance… • 2009 Results • $21.6B in Sales • $2.4B in FCF • Key Metrics • Growth in Subscriber Base • Growth in ARPU
DIRECTV U.S. 2009 Subscriber Base 18.5 Million (0% growth) 2009 ARPU $85.48 (1.9% Increase)
DIRECTV Latin America 2009 Subscriber Base 6.5 Million (11% growth) 2009 ARPU $57.12 (3.7% Increase)
Where do we go from here??? • Key Highlights • Island Country • Minimal Cable Infrastructure • 97M Population • Young, Educated • Consumer Economy • 74% TV Penetration • Marketing Friendly Philippines
Open to Investment WTO Membership 1995 Electricity Infrastructure Initiative Philippines
Government & policies 40% Maximum Stake! . . . Corruption! 30% …“Filipino First”
Investment Option 40% Stake Premier Content
Customer… Low ARPU Limited Purchasing Power High Proportion of Consumer Spending
Recommendations $300 M • Philippines Ideal Hub for SE Asia • Consider more favorable suitors in the region • Establish DIRECTV SE Asia and begin incremental expansion Philippines A Single Satellite can provide coverage to the entire SE Asian Region