Hughes Revenues Rise, While One-time Charge Spurs Bottom-line Decline
El Segundo, Calif.-based Hughes Electronics [NYSE: HS] reported that its fourth quarter 2003 revenues rose more than 20 percent to $2.95 billion, on the strength of rising subscriber gains and average revenue per user (ARPU) at the company’s U.S. satellite TV unit DirecTV.
The improved revenues also were aided by higher sales of DirecTV set-top boxes and DirecWay satellite broadband services at Germantown, Md.-based Hughes Network Systems (HNS). However, the bottom-line results at Hughes dipped largely due to a one-time pre-tax charge of $132 million caused by its December 2003 sale to News Corp. [NYSE: NWS], as well as increased marketing costs at DirecTV to acquire new subscribers.
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