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Echostar Revenues Climb On Higher Spending Per Subscriber
Echostar Communications Corp. reported revenues of $2.5 billion in the 2006 second quarter, up 17 percent from revenues of $2.1 billion in the same period a year ago, Echostar announced Aug. 10.
Echostar’s Dish Network added about 195,000 net new subscribers during the second quarter of 2006, closing the period with 12.5 million subscribers. In the 2005 second quarter, Echostar added 225,000 subscribers to raise its total base to 11.5 million. Echostar attributed the smaller subscriber additions to a slight increase in churn.
Subscriber-related revenue improved from $2 billion in the 2005 second quarter to $2.3 billion in the 2006 second quarter, which closed June 30. Equipment sales were $114.7 million in the most recent quarter, up from $79.3 million a year ago.
Average revenue per subscriber improved from $58.53 in the 2005 second quarter to $62.17 in the most recent three months. Echostar attributed the increase to price increases, higher equipment rental fees, revenue from increased availability of standard- and high-definition local channels and fees for digital video recorders.
Subscriber acquisition costs were $683 in the 2006 second quarter, down from $692 in the 2005 second quarter.
Echostar posted a profit of $1668.9 million in the 2006 second quarter down from a profit of $855.5 million in the 2005 second quarter, which included a non-case gain of about $593 million to recognize a tax gain.
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