Echostars Report 1Q 2016b Financial Results
Englewood, CO., May 10, 2016-- EchoStar Corporation (NASDAQ: SATS) today announced its financial results for the quarter ended March 31, 2016. EchoStar results were within striking distance of consensus and good enough for the stock to hold a 4-5% gain through most of the trading day (close was +3.8%).
2016 launch outlook (launches will be primary catalysts for ESS growth), and continues to make regulatory progress with its European S-band effort. Echostar expects 2016 growth to be muted due to capacity constraints, but the planned addition of five satellites should position 2017 for a return to growth.
Adjusted EBITDA declined 1% y/y to $218 million (excludes FCC fee benefit and FX benefit), and 6% short of consensus. Companywide revenue increased 2% y/y (2% above consensus), propelled by 11% growth in the ETC segment (Hopper 3 rollout).
Highlights of the quarter include:
- Consolidated revenues of US$ 816 million compared to US$ 799 million in the first quarter of 2015.
- Consolidated EBITDA of US$ 223 million compared to US$ 214 million in the first quarter of 2015.
- Consolidated net income attributable to EchoStar common stock of $50.7 million and diluted earnings per share of US$ 0.54 compared to US$ 33.4 million and US$ 0.36 in the first quarter of 2015.
- Approximately 1,038,000 HughesNet subscribers as of March 31, 2016 compared to 998,000 subscribers as of March 31, 2016
According to analyst firm Raymond James, following the successful launch of Eutelsat 65 West A, EchoStar is awaiting four additional satellite launches in 2016 that will bring muchneeded growth capacity for broadband, DTH, and enterprise services. Additionally, two of these satellites will support EchoStar’s Latin American expansion effort. One launch date (EchoStar XXI) slipped a quarter to 3Q16, but won’t have a material impact on the company’s projected cash flow or spending outlook.
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