Hughes Adds Subscribers During Tough Q2 for Parent Company EchoStar
EchoStar reported its financial results for both the three and six months ended June 30, 2020, in which it reported consolidated revenues of $459.5 million for Q2 2020. Consolidated revenue was down $0.9 million Year-Over-Year (YOY), including an estimated negative foreign exchange impact of $12 million.
Meanwhile, Hughes, a subsidiary of EchoStar, reported a slight increase in quarterly and year-to-date revenues at $453.1 million and $911.6 million, respectively. Hughes also added 26,000 broadband subscribers during the quarter, continuing a growth streak that builds on its 1.542 million-strong subscriber base.
EchoStar saw a net loss from continuing operations of $14.8 million, consolidated net loss attributable to EchoStar common stock of $11.4 million, and diluted loss per share of $0.12. This was a decrease of loss by $15.2 million from the same period last year. The company attributed the lower loss to a higher operating income of $39.4 million and a lower net interest expense of $3 million.
EchoStar’s adjusted EBITDA increased 19%, or $26.2 million year-over-year. Specifically, its Hughes subsidiary’s EBITDA increased $31.1 million year-over-year. The company attributed this increase to a higher margin, primarily associated with consumer service as well as lower sales, marketing, and other operating expenses.
“The second quarter of 2020 continued to demonstrate that we are in extraordinary times, and despite the ongoing challenges of COVID-19, I am proud of our second quarter performance,” said EchoStar CEO and President Michael Dugan. “Whether our current environment is a ‘new normal’ or a temporary state, EchoStar remains focused on delivering the connectivity our customers need today and into the future. Operationally, we increased our consumer subscriber base by approximately 26,000, driven by our international markets, bringing our broadband subscriber total to approximately 1.542 million. We continue to monitor economic conditions and are prudently managing the business. We are also excited to be joining the consortium selected to acquire OneWeb out of bankruptcy and to continue as a trusted technology and distribution partner for OneWeb as it emerges from bankruptcy”