Viewers still want their satellite TV, but DirecTV (NYSE: DTV) paid more to add new subscribers and keep its existing ones, which hurt profits. The company’s first-quarter 2009 revenue grew 7 percent to $4.9 billion (just below analyst expectations of $5 billion) and earnings per share decreased 38 percent to $0.20 (versus analyst expectations of $0.33). 

SEE ALSO: Liberty Media Merges Liberty Entertainment With DirecTV

—The company added 460,000 net subscribers, up 67 percent over the number added the same quarter last year.
—Subscriber acquisition costs increased 22 percent, to $709 million, while upgrade/retention costs increased 8 percent, to $281 million.
—Average revenue per user (ARPU) grew only 1 percent due to promotions and discounts for new subscribers.
—DirecTV Latin America continued to grow, adding 148,000 net subscribers during the quarter, but at a slower rate; it added 200,000 subscribers in the first quarter of 2008.