Satellite television company DirecTV Group Inc. said Wednesday that its first-quarter earnings rose 10.4% after it acquired a surprising number of new U.S. subscribers despite a housing meltdown.

The El Segundo company said net income climbed to $371 million, or 32 cents a share, in the three months ended March 31 from $336 million, or 27 cents, a year earlier. Revenue rose 17% to $4.59 billion.

It added 275,000 net U.S. subscribers, well above analyst expectations of about 180,000, and increased its domestic subscriber base by 5.2% to 17.1 million.

"The overarching question is where are all these subscribers coming from?" said analyst Craig Moffett of Sanford C. Bernstein & Co. "Last time I looked, the news said we were on or near a recession. And yet the pay-TV market seems to be undergoing some kind of renaissance."

DirecTV shares rose $1.21, or 4.7%, to $27.01.

Analysts surveyed by Thomson Financial expected profit of 31 cents a share on revenue of $4.47 billion.

Average monthly revenue per U.S. subscriber rose 8.6% from a year ago to $79.70, driven by price increases for programming, better pay-per-view sales and higher fees for high-definition and digital video recording equipment and services.

DirecTV also said John Malone's Liberty Media Corp. had agreed to restrict its voting interest to 48% to allow DirecTV to increase its share repurchase program to $3 billion, up from the $1 billion announced earlier, funded by as much as $2.5 billion in new debt.

In late February, Liberty Media acquired a 41% stake in DirecTV by swapping a 16% stake in News Corp. plus $625 million in cash.

In April, Liberty increased its stake in DirecTV to 48%, and analysts expected Liberty to attempt to buy the whole company.

Botox, currency boost Allergan

Allergan Inc.'s net income more than doubled in the first quarter as sales accelerated outside the U.S. for the wrinkle remover Botox. Demand cooled in the U.S., and the company blamed the economy.

Net income increased to $111.4 million, or 36 cents a share, from $43.8 million, or 14 cents, a year earlier, the company said. Revenue grew 23% to $1.08 billion, bolstered by converting overseas sales in other currencies to the dollar.

Irvine-based Allergan sells cosmetic and medical products including breast implants, surgical devices to remedy obesity and a treatment for overactive bladders. Botox accounted for 31% of its sales last year, with most in the U.S.

"The U.S. showed signs of softening, and consumers adjusted their spending," Chief Executive David E.I. Pyott said. "Our results demonstrate the strategic value of product diversity and global presence."

Allergan shares fell $1.77, or 3.3%, to $52.55.

Valeant's adjusted data show loss

Valeant Pharmaceuticals International said its first-quarter net income edged up slightly. However, with results adjusted for continuing operations, the Aliso Viejo-based specialty pharmaceutical company posted a loss, missing Wall Street expectations.

The company said it earned $9.5 million, or 11 cents a share, compared with $9.3 million, or 10 cents, a year earlier. Revenue fell 5% to $194.7 million.

Excluding discontinued operations and certain one-time costs and gains, Valeant lost $3.9 million, or 4 cents a share.

Analysts polled by Thomson Financial expected a profit of 2 cents a share on revenue of $193.1 million.

"The financial results from this quarter continue to highlight the need for decisive change at Valeant," Chief Executive J. Michael Pearson said, adding that he had begun cutting costs.

Shares of Valeant fell 26 cents to $12.82.

From Times Wire Services