DIRECTV is one of the world’s leading providers of digital television entertainment services delivering a premium video experience through state-of-the-art technology, unmatched programming, and industry leading customer service to more than 39 million customers in the U.S. and Latin America. DIRECTV operates the Root Sports Network of sister companies including Root Sports Northwest, Root Sports Rocky Mountain, Root Sports Pittsburg, and Root Sports Houston. These companies produce broadcasts for NBA, MLB, and NHL professional teams including the Seattle Mariners, Utah Jazz, Colorado Rockies, Pittsburg Pirates, Pittsburg Penguins, Houston Rockets, and Houston Astros.
Enterprise level profit and loss visibility was not enough. Instead, DIRECTV needed a way to track profitability of individual broadcast events. Each event generates revenue, and comes with associated expenses that include game-day talent, equipment, broadcast fees, and more.
Additionally, the Root Sports sister companies produce a number of intercompany transactions. These transactions needed to be accurately tracked to provide an accurate picture of event profitability.
Spring2 began working for DIRECTV and their affiliated companies in 2006. During that time, Spring2 has helped them add several new entertainment companies to their portfolio from an IT and accounting information perspective. Specific results include:
- Detailed P&Ls are tracked for each event – using Microsoft Dynamics GP Analytical Accounting and MS management reporter, Spring2 built a reporting infrastructure that provides detailed P&L on a per game basis.
- Budget variance reporting – Using Dynamics GP, Spring2 designed budgeting capabilities that provide variance information on a per game basis resulting in more accurate budgeting and forecasting for future events.
- Intercompany expense management – Spring2 set up the tracking and reporting infrastructure to help DIRECTV accurately track intercompany expenses.
- Dual entry was eliminated and manual labor reduced – from a payment standpoint, the system is designed so one company can pay for all of an expense in behalf of other entities. This expense will be automatically split and allocated to the correct expense account for all entities involved.
DIRECTV is a leader in high definition programming with over 195 channels and is consistently rated high in customer service.
Measuring profitability at the game level allows them to make important business decisions regarding revenue and expense management.
Sister companies all over, Pittsburg, Houston, Seattle and Denver – intercompany transactions – such as a shared expense for office supplies –