EchoStar Generates 340,000 Net New Subs
Englewood, Colo.-based EchoStar Communications [DISH] boosted its subscriber numbers and its revenues during 2Q04, adding 340,000 net new subscribers to total more than 10 million customers. On the revenue side, EchoStar reached $1.78 billion during the second quarter, compared with $1.41 billion during the corresponding period last year.
EchoStar’s net income for the quarter slipped to $85 million, down from $129 million during the same period a year ago. The company attributes this lag to the high cost of signing new customers.
Charlie Ergen, EchoStar’s CEO, told Wall Street analysts during a conference call today that his company’s quarterly performance was “pretty solid” overall. A stepped-up number of new installations came at the expense of carrying more inventory and of hiring more people, Ergen said, adding, “That puts a lot of pressure on margins until you become efficient with the new hires.”