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Guest Message by DevFuse

Pegasus Talks About RadioShack/DISH Deal


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Posted 20 February 2002 - 05:26 AM


Pegasus used its fourth quarter and year-end 2002 results conference call to talk about EchoStar's new relationship with RadioShack, which will give the retailer access to product for the nation's top two satellite TV companies.

Pegasus CEO Mark Pagon said he was "disappointed but not surprised" by the EchoStar/RadioShack combination, given that national retailers may need to forge a relationship with a merged satellite TV company. The partnership also comes after RadioShack suspended sales of DirecTV, which is trying to combine operations with EchoStar, in areas served by Pegasus and the National Rural Telecommunications Cooperative.

Beginning in April, RadioShack will begin selling DISH Network products nationwide along with DirecTV. In addition, RadioShack will offer installation for both EchoStar and DirecTV in the near future.

Pegasus has been contacting independent RadioShack licensees in the rural territories it serves about selling its DirecTV product, Pagon said. About 40 percent of those retailers have been signed up by the company, and Pagon said he expects 60 percent to 75 percent of independent RadioShack franchisees to partner with Pegasus.

For the fourth quarter, Pegasus reported 23,000 net subscriber additions for its DirecTV business, compared to 73,000 for the same period in 2000. The company ended 2002 with 1.519 million DBS customers.

When compared to the same three-month period in 2000, fourth quarter DBS net revenues increased $27.3 million, or 14 percent, to $219.6 million. DBS pre-marketing cash flow increased $4.1 million, or 7 percent, to $62 million.

DBS subscriber acquisition costs decreased $43.9 million, or 75 percent, to $14.4 million. Subscriber acquisition costs per gross subscriber addition totaled $155 compared to the previous total of $462.

From <a href="http://www.skyreport.com" target=none>SkyReport</a> (Used with permission)


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