Satellite operator DirecTV posted a narrowed first-quarter loss and posted a strong gain revenue, thanks in large part to the addition of more than half a million net new subscribers during the period.

DirecTV reported a loss of $41 million, compared with year-ago red ink of $639 million, while revenue advanced 26 percent to $3.15 billion.

The company attributed the improved results to the addition of 505,000 net new subscribers during the quarter as well as the full economics of the former National Rural Telecommunications Cooperative customers who were folded into DirecTV’s results starting in the 2004 third quarter. Those factors helped offset a decline in set-top box revenue derived from Hughes Networks Systems, which sold the set-top box manufacturing business last June.

DirecTV said that significant portions of the subscriber growth came as a result of the partnership DirecTV has with a number of telephone companies, which combined to add more than 150,000 net new customers, as well as its Spanish-language Para Todos product, which was responsible for 120,000 net new customers in the quarter.

CEO Chase Carey warned that the second quarter was likely to be “challenging” due to seasonal factors. He noted that the second quarter is traditionally a tough quarter in which to build subscribers, but that this year would also be affected by stricter credit quality standards for new customers as well as price increases imposed in March.