Jump to content


Welcome to DBSTalk


Sign In 

Create Account
Welcome to DBSTalk, like most online communities you must register to view or post in our community, but don't worry this is a simple free process that requires minimal information for you to signup. Be a part of DBSTalk by signing in or creating an account.
  • Start new topics and reply to others
  • Subscribe to topics and forums to get email updates
  • Get your own profile page and make new friends
  • Send personal messages to other members.
 
Guest Message by DevFuse

Photo

DirecTV Helps Hughes 4Q


  • This topic is locked This topic is locked
No replies to this topic

#1 OFFLINE   Steve Mehs

Steve Mehs

    Hall Of Fame

  • Banned User
  • 11,499 posts
Joined: Mar 21, 2002

Posted 16 January 2003 - 05:10 AM

The improving operating performance at DirecTV U.S. helped Hughes Electronics in the fourth quarter, but company officials said they still need to deal with issues at other units - including struggling DirecTV Latin America.

During a conference call Wednesday, executives hyped efforts taken at DirecTV during the past 18 months to lower churn, reduce subscriber acquisition costs and increase monthly revenue per subscriber. They said that work helped DirecTV fourth quarter revenues increase by more than 19 percent to about $1.8 billion and push up EBITDA to $191 million when compared to the same period in 2001.

DirecTV ended 2002 with 11.18 million subscribers. As for projections, DirecTV execs said they expect the service to add between 750,000 and 800,000 net subscribers in 2003. The company also plans a $2 rate increase for certain packages.

Shaw said Hughes continues to shut down its DirecTV DSL service and address issues surrounding DirecTV Latin America. The CEO said DirecTV Latin America's "condition is unacceptable" and that a bankruptcy for the unit may come at the end of the month.

Shaw said Hughes moved quickly to address issues facing DirecTV Broadband and DirecTV Latin America as soon as its proposed merger with EchoStar was terminated. "As a result of our recent announcements to shutdown DirecTV Broadband and restructure DirecTV Latin America, we expect to reduce our cash requirements by several hundred million dollars over the next few years," he said.

Spaceway, Hughes' next-generation satellite platform, has met most of its cash requirements, Shaw said. The platform needs $400 million - mostly for the launch of satellites - to get to the next step, he said. Shaw emphasized that Spaceway will be marketed to enterprise customers when it rolls out in 2004, and will target residential users when that potential "is proven."

Shaw wouldn't elaborate on any potential acquisition of his company. It's expected that News Corp. may bid for the Hughes and DirecTV assets. Hughes abandoned its merger with EchoStar in December due to government antitrust concerns.

Hughes reported fourth quarter revenues increased 8.3 percent to $2.471 billion, compared with $2.281 billion in the fourth quarter of 2001.


From SkyReport (Used with Permission)
Friends Don't Let Friends Subscribe To: Verizon Landline, Verizon DSL, Verizon Fios Phone, Verizon Fios Broadband, Verizon Fios TV, Verizon Wireless or Verizion Wireless Mobile Broadband
Keep America Beautiful, Ban Verizon From Your Home!
Down With Verizon!

...Ads Help To Support This SIte...



spam firewall