EchoStar Posts 46% Total Revenue Increase in Third Quarter; Adds 360,000 New Subs23 Oct, 2001 By: Staff Reporter
EchoStar Communications Corp., the No. 2 satellite-television company, posted a third-quarter profit Tuesday as it added 360,000 new subscribers. The Littleton, Colo.-based company, which is currently involved in a bidding war with News Corp. for Hughes Electronics' DirecTV unit, reported $3 million in net income, a $145 million improvement from the previous year's $142 million loss.
BR>Total revenue for the quarter ending Sept. 30 reached $1 billion, a 46% increase compared to $698 million for the corresponding period in 2000.
Chairman and c.e.o. Charles Ergen was much more positive about competitor DirecTV, which beat EchoStar this quarter on net adds of 425,000. He told analysts that a merger with DirecTV would allow his company to cut costs and boost sales.
While subs for EchoStar increased 3% from second quarter, they declined 21% from the same quarter last year. EchoStar attributed the decline to increased customer turnover, incentives from cable companies, piracy of competitor products and other factors.
"The quarter was a little better then my numbers predicted but it wasn't as good as the June quarter," said Matthew Harrigan, analyst with Janco Partners. "It's the first quarter in a while that they haven't beaten out DirecTV in new subs."