Audio Video News

EchoStar Communications has posted some positive numbers in the wake of its recent announcement of a joint HDTV venture with CBS.

On July 19, the Littleton, CO–based direct broadcast satellite (DBS) service reported a return to profitability, with net income of $2.1 million, compared to a loss of $133.1 million for the same period a year earlier. Revenue grew 50% to $966.3 million from $646.1 million, exceeding Wall Street forecasts of $951 million.

The company added approximately 350,000 subscribers during the second quarter, bringing its total subscription base to well over 6,000,000 viewers by the end of June. EchoStar's earnings before interest, taxes, and adjustments rose to $134 million for 2001 so far, compared to a loss of $31 million in 2000. The improved performance was in large part attributed to higher average revenue of $50 per subscriber.

The company's Dish Network continues to gain on Hughes Electronics' DirecTV, still the number one DBSer despite losing almost 600,000 subscribers since the beginning of the year. EchoStar's subscriber base is up 41% over last year's, while DirecTV has scaled back its projected earnings by almost $150 million. The war for control of the skies continues on several fronts, as Hughes Electronics, a unit of General Motors, may be close to finalizing its acquisition by Rupert Murdoch's News Corp. EchoStar had also sought to acquire its larger rival, a effort that now appears to have failed.