[Satellite TODAY Insider 05-08-11] Hughes posted a 9 percent increase in 2011 first quarter revenues at $264 million compared with the same period last year, backed by a 15 percent increase in consolidated services revenues of $216 million, the company announced in its latest financial results issued May 5.
Hughes set a company record for quarterly net subscriber additions at 35,000, which exceeded analysts’ estimates by 75 percent. Hughes ended the 2011 first quarter with 613,000 total subscribers — an increase of 16 percent from 2010 — and improved its ARPU by $3 to $75 per month. New orders jumped 12 percent to $266 million and Hughes finished the quarter with a non-consumer backlog of $1.1 billion.
Raymond James Analyst Chris Quilty said he believes that Hughes will carry the momentum of its first quarter performance following its acquisition by EchoStar, which was initially announced in February. “Hughes reported some impressive consumer growth numbers this morning. Net adds jumped 35 percent and overall consumer revenues grew 15 percent to $131 million. They did, however, miss my EBITDA forecast of $64 million by reporting $58 million. But who really cares? The Hughes/EchoStar acquisition has already received HSR approval and is likely to close in the next month or so,” Quilty said in a statement to Satellite TODAY Insider.
Hughes CEO Pradman Kaul said his company’s performance in the consumer markets led the way in the first quarter of 2011, resulting in strong services revenue growth. “The enterprise segments also showed healthy revenue growth and our order backlog continues to be strong, all of which made this an outstanding quarter. Development work on our Jupiter satellite continues on-track for a launch in the first half of 2012, and we are making good progress on the regulatory front as it relates to the merger with EchoStar. We are very pleased with our accomplishments in the quarter,” Kaul said in a statement.
CFO Grant Barber said Hughes’ success with consumers this quarter was driven by unique business models. “The strategy of expanding margins through the satellite ownership model continues to play out very well, as evidenced by continued growth in our operating profits and adjusted EBITDA in the first quarter of 2011. This, combined with strong working capital management, enabled us to fund substantial capital expenditures on Jupiter and maintain our liquidity at a healthy level.”
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