EchoStar Announces Financial Results for the Three and Nine Months Ended September 30, 2024
ENGLEWOOD, Colo., Nov. 12, 2024 /PRNewswire/ -- EchoStar Corporation (NASDAQ:SATS) announced its financial results for the three and nine months ended September 30, 2024.
Nine Months Ended September 30, 2024:
EchoStar reported total revenue of $11.86 billion for the nine months ended September 30, 2024, compared to $12.85 billion in the year ago period.
Net loss attributable to EchoStar in the first three quarters of 2024 was $454.78 million, compared to net income of $327.83 million in the year-ago period. Diluted loss per share was $1.67, compared to earnings per share of $1.06 in the year-ago period.
Consolidated OIBDA totaled $1.23 billion for the nine months ended September 30, 2024, compared to $1.69 billion in the year-ago period. (See OIBDA definition and non-GAAP reconciliation below.)
"The EchoStar team continued to execute against our plan in the third quarter. Our efforts focused on profitable customer acquisition and retention, strengthening our consumer offerings and enhancing our nationwide Open RAN 5G network," said Hamid Akhavan, president and CEO, EchoStar Corporation. "In addition, we recently announced a series of transformative transactions that will disrupt the wireless and pay-TV industries. We secured financing to meet our November debt maturity and announced an agreement with a group of our convertible note holders. This last transaction provides approximately $5.2 billion in additional financing and extends payment terms for the existing convertible notes tendered. In addition, we agreed to sell our pay-TV business to DIRECTV, subject to successful completion of an ongoing exchange and other closing conditions."
Three Months Ended September 30, 2024:
Net Pay-TV subscribers decreased approximately 43,000 in the third quarter, compared to a decrease of 64,000 in the year-ago quarter. Sling TV subscribers increased 145,000 in the third quarter, compared to a 117,000 increase in the year-ago quarter. The company closed the third quarter with 8.03 million Pay-TV subscribers including 5.89 million DISH TV subscribers and 2.14 million SLING TV subscribers. This decrease in net Pay-TV subscriber losses resulted from higher net SLING TV subscriber additions in the third quarter compared to the year-ago quarter and a lower DISH TV churn rate, offset by lower gross new DISH TV subscriber activations.
Retail Wireless subscribers, excluding Affordable Connectivity Program ("ACP") subscribers, increased approximately 62,000 in the third quarter. The company closed the third quarter with 6.98 million Retail Wireless subscribers. Retail Wireless net subscribers decreased by approximately 297,000 in the third quarter, compared to a decrease of 225,000 in the year-ago quarter. The increase in net retail wireless subscriber losses resulted from net losses of government subsidized subscribers, including ACP subscribers, compared to net additions in the year ago quarter, primarily due to the ACP program funding concluding on June 1, 2024. The third quarter was positively impacted by a lower retail wireless churn rate.
The company closed the third quarter with 912,000 Broadband Satellite subscribers, a decrease of approximately 43,000 in the quarter, compared to 59,000 in the year-ago quarter. The decrease in net Broadband Satellite subscriber losses was primarily due to the new EchoStar XXIV (Jupiter 3) satellite service launch and increased subscriber demand for our new satellite service plans. The third quarter was negatively impacted by the ACP program funding concluding on June 1, 2024.
Set forth below is a table highlighting certain of EchoStar's segment results for the three and nine months ended September 30, 2024 and 2023 (all U.S. GAAP amounts reference results from operations):
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
2024
2023
2024
2023
(in thousands)
Revenue
Pay-TV
$ 2,618,031
$ 2,807,101
$ 8,020,893
$ 8,754,372
Retail Wireless
895,949
890,980
2,693,330
2,794,087
5G Network Deployment
43,227
29,916
108,245
67,902
Broadband and Satellite Services
386,709
413,073
1,163,306
1,305,779
All Other & Eliminations
(52,932)
(32,196)
(127,196)
(69,138)
Total
$ 3,890,984
$ 4,108,874
$ 11,858,578
$ 12,853,002
Net Income (loss) attributable to EchoStar
$ (141,812)
$ (138,371)
$ (454,779)
$ 327,825
OIBDA
Pay-TV
$ 676,003
$ 675,565
$ 2,184,514
$ 2,271,638
Retail Wireless
(90,755)
(105,617)
(174,268)
(130,275)
5G Network Deployment
(330,737)
(299,146)
(977,319)
(813,597)
Broadband and Satellite Services
77,526
112,957
239,205
393,339
All Other & Eliminations
(15,370)
(17,897)
(43,153)
(31,289)
Total
$ 316,667
$ 365,862
$ 1,228,979
$ 1,689,816
Purchases of property and equipment, net of refunds, (including capitalized interest related to regulatory authorizations)
Pay-TV
$ 53,357
$ 64,331
$ 165,275
$ 167,524
5G Network Deployment
396,596
852,169
1,506,237
2,907,102
Broadband and Satellite Services
44,913
79,164
172,083
172,251
Total
$ 494,866
$ 995,664
$ 1,843,595
$ 3,246,877
Reconciliation of GAAP to Non-GAAP Measurement:
For the Three Months Ended September 30, 2024
Pay-TV
Retail Wireless
5G Network Deployment
Broadband and Satellite Services
Consolidated
Eliminations
(In thousands)
Segment operating income (loss)
$
588,501
$
(113,792)
$
(600,270)
$
(36,116)
$
910
$
(160,767)
Depreciation and amortization
87,502
23,037
269,533
113,642
(16,280)
477,434
OIBDA
$
676,003
$
(90,755)
$
(330,737)
$
77,526
$
(15,370)
$
316,667
For the Three Months Ended September 30, 2023
Segment operating income (loss)
$
589,465
$
(168,166)
$
(463,105)
$
9,991
$
466
$
(31,349)
Depreciation and amortization
86,100
62,549
163,959
102,966
(18,363)
397,211
OIBDA
$
675,565
$
(105,617)
$
(299,146)
$
112,957
$
(17,897)
$
365,862
For the Nine Months Ended September 30, 2024
Pay-TV
Retail Wireless
5G Network Deployment
Broadband and Satellite Services
Consolidated
Eliminations
(In thousands)
Segment operating income (loss)
$
1,926,361
$
(309,571)
$
(1,749,961)
$
(110,256)
$
2,047
$
(241,380)
Depreciation and amortization
258,153
135,303
772,642
349,461
(45,200)
1,470,359
OIBDA
$
2,184,514
$
(174,268)
$
(977,319)
$
239,205
$
(43,153)
