- Total Cash and Marketable Securities: $5.7 billion at the end of Q4, an increase of $3 billion from the prior quarter.
- Revenue (Q4 2024): Approximately $4 billion, down 5% year-over-year.
- Revenue (Full Year 2024): $15.8 billion, down 7% year-over-year.
- OIBDA (Q4 2024): $397 million, an increase of $9 million year-over-year.
- OIBDA (Full Year 2024): $1.6 billion, down from $2.1 billion in 2023.
- Free Cash Flow (2024): Negative $1.2 billion, an improvement of approximately $500 million compared to the prior year.
- CapEx (2024): Reduced by over 50% to $1.5 billion.
- Pay TV ARPU Increase (2024): 4.2% year-over-year.
- DISH TV Subscribers (End of 2024): Approximately 5.7 million.
- Sling Subscribers (End of 2024): Approximately 2.1 million, a year-over-year increase of almost 40,000.
- Hughesnet Subscribers (End of 2024): Approximately 880,000.
- Boost Mobile Subscribers (End of 2024): Approximately 7 million, with a growth of 90,000 net subscribers in Q4.
- 5G Network Coverage: Over 80% of Americans, more than 268 million people.
- Warning! GuruFocus has detected 9 Warning Signs with SATS.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- EchoStar Corp (NASDAQ:SATS) successfully merged with DISH Network, creating a company with a broad portfolio in telecom, media, and space verticals.
- The company improved its capital structure by raising $5.6 billion in net proceeds and extending debt maturities to 2030.
- Boost Mobile achieved consecutive quarter-over-quarter net positive subscriber growth since Q1 2024, with improved churn and ARPU.
- EchoStar Corp (NASDAQ:SATS) met its FCC milestone by extending 5G broadband coverage to over 80% of Americans.
- The Hughes business was recognized as a leader in the Gartner Magic Quadrant for Managed Network Services for the second consecutive year.
Negative Points
- EchoStar Corp (NASDAQ:SATS) reported a 7% year-over-year decline in consolidated revenue for 2024 due to subscriber declines.
- The company experienced a negative free cash flow of $1.2 billion in 2024, despite improvements from the prior year.
- Revenue in the fourth quarter was down 5% year-over-year, primarily due to fewer subscribers at Pay TV and Hughes.
- OIBDA decreased from $2.1 billion in 2023 to $1.6 billion in 2024, driven by lower average subscribers and higher wireless network spend.
- The company faces a maturity wall in two years, requiring ongoing efforts to improve the balance sheet and extend maturities.
Q & A Highlights
Q: What are EchoStar's plans for expanding the 5G network, and what are the targets for site deployment by the end of 2026? A: John Swieringa, President - Technology and COO, clarified that EchoStar aims to have 24,000 sites on air by June 14, 2025, as per the new FCC framework. The company is focused on meeting commitments and will continue to deploy sites based on customer experience and FCC requirements. However, they are not sharing specific numbers for the end of 2026, as deployment will be success-based and driven by market needs.
Q: How is EchoStar leveraging cross-selling opportunities between its video and mobile services, and what impact does this have on growth? A: Hamid Akhavan, President and CEO, stated that EchoStar is just beginning to explore bundling opportunities. They have started cross-bundling Pay TV with Hughes consumer connectivity and integrated Sling service into the Boost Mobile app. While these initiatives are in early stages, they are expected to contribute to growth in 2025 as EchoStar leverages its unique combination of satellite, content, and 5G assets.
Q: Can you elaborate on EchoStar's direct-to-device satellite connectivity and its competitive positioning in this market? A: Hamid Akhavan explained that EchoStar is uniquely positioned with significant ITU rights and expertise in both satellite and mobile services. The company has been offering direct-to-device messaging in international markets and is developing next-generation broadband connectivity. EchoStar's combination of satellite and terrestrial mobile capabilities, along with its spectrum assets, sets it apart in the market.
Q: What are the trends in wireless ARPU, and how does EchoStar plan to balance customer acquisition with EBITDA impact? A: Hamid Akhavan noted that wireless ARPU is increasing due to higher-priced plan adoption and a focus on acquiring higher-quality customers. While customer acquisition impacts EBITDA negatively in the short term, EchoStar is focused on profitable growth and maximizing customer lifetime value. The company is not constrained by cash and is willing to invest in growth opportunities.
Q: How does EchoStar view the competitive landscape with Starlink in the satellite broadband market, particularly in enterprise and government sectors? A: Paul Gaske, COO - Hughes, highlighted that EchoStar's Hughesnet focuses on providing economical satellite solutions for rural America, particularly for video services. While Starlink is a competitor, EchoStar differentiates itself through specialized service parameters and SLAs. The company leverages its strengths in enterprise and government markets, where it holds a leadership position in the Gartner Magic Quadrant.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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