Hughes Communications Records Strong Quarter Led by International VSAT
[Satellite Today 11-07-08] Hughes Communications Inc. reported record revenues in its third financial quarter of 2008 with a 16 percent increase from the same period in 2007, according to CEO Pradman Kaul.
Kaul said that even though all departments reported double-digit percentage increases, the company’s consumer group and its international VSAT segment were leading areas of revenue growth. “We had 44,000 new consumer activations in the third quarter of 2008, an increase of 19 percent over the third quarter of 2007. Churn in the third quarter was 2.6 percent, which was an increase over the churn of 2.3 percent in the second quarter of 2008,” he said.
Hughes reported average revenue per unit at $66 compared to $63 in the third quarter of 2007. As a result, the company said its consumer services revenue increased to $82 million in the third quarter of 2008, a 20 percent growth over the third quarter of 2007. Revenue in the International VSAT segment grew by 22 percent over the same period last year.
“We received $272 million of new orders in the third quarter of 2008,” said Kaul. “These orders were well distributed among our different segments. The North America VSAT segment received a significant order for $33 million from Chevron for the continuation of broadband services to gas stations and convenience stores across the United States. The contract includes the provision of satellite capacity and field maintenance and the operation of private telecommunications infrastructure.”