Dishing up sat gains
EchoStar boosts profits, subs, disappoints Street
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The Denver-based company posted profit of $129 million in the latest quarter, a 249% leap from the same period last year.
Revenue rose 21% to $1.41 billion, as Dish added 270,000 net new subscribers in the quarter for a total 8.8 million subs as of June 30. That repped an 18% improvement over a year earlier, though it still lagged satcasting rival DirecTV's 11.6 million subs.
Churn squirm
But execs acknowledged a higher rate of turnover in subs than a year ago, and churn rate was also a bit higher than the most recent turnover rate for DirecTV.
"We have room for improvement," Ergen acknowledged in a conference call with analysts.
EchoStar said its free cash flow totaled $151 million in the latest quarter, up 358% from a year ago. Cash flow was helped by a legal settlement in a case involving set-top boxes and was hurt by costs associated with use of a new satellite set to launch next year.
Court victory
Separately Wednesday, EchoStar touted as a "major victory" a decision by the 11th Circuit Court of Appeals in Atlanta to stay a lower court's injunction pending further appeal in a case involving carriage of broadcast channels on the Dish Network.
Dish has been warring with ABC, CBS, NBC and Fox over the right to provide its subscribers feeds of out-of-town network affiliates. The webs argue ratings of local affils would be hurt by allowing such arrangements.
EchoStar shares fell $1.85, or 5%, at $34.27.
