EchoStar Announces Financial Results for the Three Months Ended March 31, 2025
-
Wireless: Net subscriber growth (+150K), improved churn (7.2% year-over-year), filed
Federal Communication Commission (FCC ) certification of more than 24,000 5G constructed "on-air" sites one month ahead of schedule - Pay TV: Lowest DISH TV churn (1.36%) in over a decade (excluding the pandemic), growth in average revenue per user (ARPU) (+3% year-over-year)
- Broadband & Satellite Services: Enhanced in-flight offerings through universal Ka- and Ku-bands, new international contracts for managed network services, expanded enterprise backlog (+5% year-over-year)
The company continued to build on the solid foundation laid last year as a global leader in connectivity and entertainment solutions and services. The business drove efficiencies across all of its brands and invested in profitable growth.
"The
Wireless
Wireless consists predominantly of Boost Mobile and network wireless services, and delivered approximately
- Continued strong performance fueled by +150K subscriber net adds in Q1
- Attracted and retained high-quality customers, contributing to a 7.2% churn improvement year-over-year
- Boost Mobile Network recognized as #1 mobile network in
New York City by an independent, third-party industry benchmarking expert - Met 3GPP release 17 deployment and completed construction of 24,000 5G sites "on air" ahead of June
FCC requirement date - More than 1.25 million customers on Boost Mobile Network, and loading more than 75% of compatible devices on-net in accelerated markets
- Wireless closed the quarter with approximately 7.15 million subscribers
Pay-TV
Pay TV consists of DISH TV and Sling TV. Performance for Pay-TV was in line with expectations and delivered approximately
- Focused on operational efficiency, customer loyalty, and improving user experiences to help increase ARPU (+3%) and reduce non-programming variable costs per subscriber
- Loyalty and bundled offerings delivered lowest DISH TV churn (1.36%) in over a decade (excluding the pandemic), an 11% reduction year-over-year
- Pay-TV closed the quarter with approximately 7.4 million subscribers
- In-flight connectivity business announced universal compatibility with Ka- and Ku-bands, providing greater interoperability compared to single constellation systems in the market, enabling cost-effective flexibility and an optimal passenger experience
- Announced membership in Airbus HBCplus program enhancing ability to serve airlines as a factory line fit option at Airbus
- Completed Latin American deployment of multi-orbit managed network to support private networks and security services on LEO and geostationary Earth orbit (GEO) satellites
- Approximately
$1.6 billion contracted backlog revenue at the end of Q1 (+5% year-over-year) -
Broadband & Satellite Services closed the quarter with approximately 853,000 subscribers
Set forth below is a table highlighting certain of
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For the Three Months Ended |
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2025 |
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2024 |
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(in thousands) |
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Revenue |
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|
|
|
|
|
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Pay-TV |
|
|
|
$ 2,538,727 |
|
$ 2,726,578 |
|
Wireless |
|
|
972,775 |
|
914,006 |
|
|
Broadband and |
370,658 |
|
382,586 |
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All Other & Eliminations |
|
(12,402) |
|
(8,327) |
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Total |
|
|
$ 3,869,758 |
|
$ 4,014,843 |
|
|
|
|
|
|
|
|
|
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Net Income (loss) attributable to |
$ (202,669) |
|
$ (107,376) |
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|
|
|
|
|
|
|
|
OIBDA |
|
|
|
|
|
|
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Pay-TV |
|
|
|
$ 729,873 |
|
$ 755,510 |
|
Wireless |
|
|
(415,064) |
|
(363,496) |
|
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Broadband and |
85,703 |
|
79,287 |
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All Other & Eliminations |
|
(311) |
|
(1,145) |
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Total |
|
|
$ 400,201 |
|
$ 470,156 |
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Purchases of property and equipment, net of refunds, (including capitalized interest related to regulatory authorizations) |
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Pay-TV |
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$ 62,388 |
|
$ 57,912 |
|
Wireless |
|
|
283,993 |
|
549,173 |
|
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Broadband and |
32,103 |
|
70,611 |
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Total |
|
|
$ 378,484 |
|
$ 677,696 |
Reconciliation of GAAP to Non-GAAP Measurement:
|
For the Three Months Ended March 31, 2025 |
|
Pay-TV |
|
Wireless |
|
Broadband and |
|
Eliminations |
|
Consolidated |
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(In thousands) |
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Segment operating income (loss) |
|
$ |
653,430 |
|
$ |
(722,302) |
|
$ |
(19,195) |
|
$ |
(65) |
|
$ |
(88,132) |
|
Depreciation and amortization |
|
|
76,443 |
|
|
307,238 |
|
|
104,898 |
|
|
(246) |
|
|
488,333 |
|
OIBDA |
|
$ |
729,873 |
|
$ |
(415,064) |
|
$ |
85,703 |
|
$ |
(311) |
|
$ |
400,201 |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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For the Three Months Ended March 31, 2024 |
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Segment operating income (loss) |
|
$ |
670,108 |
|
$ |
(645,168) |
|
$ |
(39,554) |
|
$ |
(630) |
|
$ |
(15,244) |
|
Depreciation and amortization |
|
|
85,402 |
|
|
281,672 |
|
|
118,841 |
|
|
(515) |
|
|
485,400 |
|
OIBDA |
|
$ |
755,510 |
|
$ |
(363,496) |
|
$ |
79,287 |
|
$ |
(1,145) |
|
$ |
470,156 |
Note on Use of Non-GAAP Financial Measures
OIBDA is defined as "Operating income (loss)" plus "Depreciation and amortization."
OIBDA, which is presented by segment above, is a non-GAAP measure reconciled to "Operating income (loss)" and does not purport to be an alternative to operating income (loss) as a measure of operating performance. We believe this measure is useful to management, investors and other users of our financial information in evaluating operating profitability of our business segments on a more variable cost basis as it excludes the depreciation and amortization expenses related primarily to capital expenditures and acquisitions for those business segments, as well as in evaluating operating performance in relation to our competitors.
The condensed consolidated financial statements of
About
Safe Harbor Statement under the US Private Securities Litigation Reform Act of 1995
This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. When used in this release, the words "believe," "anticipate," "goal," "seek," "estimate," "expect," "intend," "project," "continue," "future," "will," "would," "can," "may," "plans," and similar expressions and the use of future dates are intended to identify forward–looking statements. Although management believes that the expectations reflected in these forward–looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made. We assume no responsibility for the accuracy of forward-looking statements or information or for updating forward-looking information or statements. These statements are subject to certain risks, uncertainties, and assumptions. See "Risk Factors" in
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Dollars in thousands, except share amounts) |
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(Unaudited) |
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As of |
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March 31, |
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2025 |
|
2024 |
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Assets |
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Current Assets: |
|
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|
|
||
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Cash and cash equivalents |
$ |
2,529,878 |
|
$ |
4,305,393 |
|
|
Current restricted cash and cash equivalents |
|
172,856 |
|
|
150,898 |
|
|
Marketable investment securities |
|
2,529,217 |
|
|
1,242,036 |
|
|
Trade accounts receivable, net of allowance for credit losses of |
|
1,183,870 |
|
|
1,198,731 |
|
|
Inventory |
|
413,365 |
|
|
455,197 |
|
|
Prepaids and other assets |
|
724,393 |
|
|
655,233 |
|
|
Other current assets |
|
94,630 |
|
|
88,255 |
|
|
Total current assets |
|
7,648,209 |
|
|
8,095,743 |
|
|
|
|
|
|
|
|
|
|
Noncurrent Assets: |
|
|
|
|
|
|
|
Restricted cash, cash equivalents and marketable investment securities |
|
172,357 |
|
|
169,627 |
|
|
Property and equipment, net |
|
8,980,928 |
|
|
9,187,132 |
|
|
Regulatory authorizations, net |
|
39,739,466 |
|
|
39,442,166 |
|
|
Other investments, net |
|
202,166 |
|
|
202,327 |
|
|
Operating lease assets |
|
3,242,450 |
|
|
3,260,768 |
|
|
Intangible assets, net |
|
70,906 |
|
|
74,939 |
|
|
Other noncurrent assets, net |
|
515,045 |
|
|
505,985 |
|
|
Total noncurrent assets |
|
52,923,318 |
|
|
52,842,944 |
|
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Total assets |
$ |
60,571,527 |
|
$ |
60,938,687 |
|
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|
|
|
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Liabilities and Stockholders' Equity (Deficit) |
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Current Liabilities: |
|
|
|
|
|
|
|
Trade accounts payable |
$ |
690,482 |
|
$ |
740,984 |
|
|
Deferred revenue and other |
|
664,924 |
|
|
650,940 |
|
|
Accrued programming |
|
1,284,309 |
|
|
1,339,072 |
|
|
Accrued interest |
|
667,674 |
|
|
352,499 |
|
|
Other accrued expenses and liabilities |
|
1,743,545 |
|
|
1,804,516 |
|
|
Current portion of debt, finance lease and other obligations |
|
1,004,626 |
|
|
943,029 |
|
|
Total current liabilities |
|
6,055,560 |
|
|
5,831,040 |
|
|
|
|
|
|
|
|
|
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Long-Term Obligations, Net of Current Portion: |
|
|
|
|
|
|
|
Long-term debt, finance lease and other obligations, net of current portion |
25,328,132 |
|
|
25,660,288 |
|
|
|
Deferred tax liabilities, net |
|
4,917,006 |
|
|
4,988,653 |
|
|
Operating lease liabilities |
|
3,195,552 |
|
|
3,211,407 |
|
|
Long-term deferred revenue and other long-term liabilities |
|
1,012,587 |
|
|
1,002,074 |
|
|
Total long-term obligations, net of current portion |
|
34,453,277 |
|
|
34,862,422 |
|
|
Total liabilities |
|
40,508,837 |
|
|
40,693,462 |
|
|
|
|
|
|
|
|
|
|
Commitments and Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Stockholders' Equity (Deficit): |
|
|
|
|
|
|
|
Class A common stock, |
|
155 |
|
|
155 |
|
|
Class B common stock, |
|
131 |
|
|
131 |
|
|
Additional paid-in capital |
|
8,779,458 |
|
|
8,768,360 |
|
|
Accumulated other comprehensive income (loss) |
|
(187,865) |
|
|
(195,711) |
|
|
Accumulated earnings (deficit) |
|
11,415,768 |
|
|
11,618,437 |
|
|
Total |
|
20,007,647 |
|
|
20,191,372 |
|
|
Noncontrolling interests |
|
55,043 |
|
|
53,853 |
|
|
Total stockholders' equity (deficit) |
|
20,062,690 |
|
|
20,245,225 |
|
|
Total liabilities and stockholders' equity (deficit) |
$ |
60,571,527 |
|
$ |
60,938,687 |
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|
|
|
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(Dollars in thousands, except per share amounts) |
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(Unaudited) |
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For the Three Months Ended |
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|
|
2025 |
|
2024 |
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Revenue: |
|
|
|
|
|
|
|
Service revenue |
|
$ |
3,606,156 |
|
$ |
3,819,673 |
|
Equipment sales and other revenue |
|
|
263,602 |
|
|
195,170 |
|
Total revenue |
|
|
3,869,758 |
|
|
4,014,843 |
|
|
|
|
|
|
|
|
|
Costs and Expenses (exclusive of depreciation and amortization): |
|
|
|
|
|
|
|
Cost of services |
|
|
2,432,198 |
|
|
2,557,182 |
|
Cost of sales - equipment and other |
|
|
439,508 |
|
|
363,083 |
|
Selling, general and administrative expenses |
|
|
597,851 |
|
|
624,422 |
|
Depreciation and amortization |
|
|
488,333 |
|
|
485,400 |
|
Total costs and expenses |
|
|
3,957,890 |
|
|
4,030,087 |
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
(88,132) |
|
|
(15,244) |
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
Interest income |
|
|
65,529 |
|
|
30,462 |
|
Interest expense, net of amounts capitalized |
|
|
(286,055) |
|
|
(99,408) |
|
Other, net |
|
|
41,390 |
|
|
(26,110) |
|
Total other income (expense) |
|
|
(179,136) |
|
|
(95,056) |
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
|
(267,268) |
|
|
(110,300) |
|
Income tax (provision) benefit, net |
|
|
63,987 |
|
|
1,925 |
|
Net income (loss) |
|
|
(203,281) |
|
|
(108,375) |
|
Less: Net income (loss) attributable to noncontrolling interests, net of tax |
|
|
(612) |
|
|
(999) |
|
Net income (loss) attributable to |
|
$ |
(202,669) |
|
$ |
(107,376) |
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding - Class A and B common stock: |
|
|
|
|
|
|
|
Basic |
|
|
286,513 |
|
|
271,519 |
|
Diluted |
|
|
286,513 |
|
|
271,519 |
|
|
|
|
|
|
|
|
|
Earnings per share - Class A and B common stock: |
|
|
|
|
|
|
|
Basic net income (loss) per share attributable to |
|
$ |
(0.71) |
|
$ |
(0.40) |
|
Diluted net income (loss) per share attributable to |
|
$ |
(0.71) |
|
$ |
(0.40) |
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|
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(In thousands) |
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(Unaudited) |
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|
|
|
|
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|
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|
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For the Three Months Ended |
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|
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|
||||
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|
|
2025 |
|
2024 |
||
|
Cash Flows From Operating Activities: |
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(203,281) |
|
$ |
(108,375) |
|
Adjustments to reconcile net income (loss) to net cash flows from operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
488,333 |
|
|
485,400 |
|
Realized and unrealized losses (gains) on investments, impairments and other |
|
|
(35,769) |
|
|
23,893 |
|
Non-cash, stock-based compensation |
|
|
7,609 |
|
|
9,058 |
|
Deferred tax expense (benefit) |
|
|
(68,902) |
|
|
(11,688) |
|
Changes in allowance for credit losses |
|
|
(1,987) |
|
|
10,516 |
|
Change in long-term deferred revenue and other long-term liabilities |
|
|
(2,772) |
|
|
(3,871) |
|
Other, net |
|
|
51,627 |
|
|
31,261 |
|
Changes in operating assets and operating liabilities, net |
|
|
(28,103) |
|
|
15,065 |
|
Net cash flows from operating activities |
|
|
206,755 |
|
|
451,259 |
|
|
|
|
|
|
|
|
|
Cash Flows From Investing Activities: |
|
|
|
|
|
|
|
Purchases of marketable investment securities |
|
|
(1,807,779) |
|
|
(19,135) |
|
Sales and maturities of marketable investment securities |
|
|
533,812 |
|
|
458,792 |
|
Purchases of property and equipment |
|
|
(258,427) |
|
|
(519,612) |
|
Capitalized interest related to regulatory authorizations |
|
|
(120,057) |
|
|
(158,084) |
|
Purchases of regulatory authorizations, including deposits |
|
|
— |
|
|
(1,104) |
|
Other, net |
|
|
(4,268) |
|
|
998 |
|
Net cash flows from investing activities |
|
|
(1,656,719) |
|
|
(238,145) |
|
|
|
|
|
|
|
|
|
Cash Flows From Financing Activities: |
|
|
|
|
|
|
|
Repayment of long-term debt, finance lease and other obligations |
|
|
(24,671) |
|
|
(27,125) |
|
Redemption and repurchases of term loans, convertible and senior notes |
|
|
(289,383) |
|
|
(951,168) |
|
Early debt extinguishment gains (losses) of convertible and senior notes |
|
|
11,465 |
|
|
— |
|
Net proceeds from Class A common stock options exercised and stock issued under the Employee Stock Purchase Plan |
|
|
2,534 |
|
|
(160) |
|
Purchase of SNR Management's ownership interest in SNR HoldCo |
|
|
— |
|
|
(441,998) |
|
Other, net |
|
|
(31,792) |
|
|
— |
|
Net cash flows from financing activities |
|
|
(331,847) |
|
|
(1,420,451) |
|
|
|
|
|
|
|
|
|
Effect of exchange rates on cash and cash equivalents |
|
|
1,714 |
|
|
(849) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents |
|
|
(1,780,097) |
|
|
(1,208,186) |
|
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period |
|
|
4,593,804 |
|
|
1,911,601 |
|
Cash, cash equivalents, restricted cash and cash equivalents, end of period |
|
$ |
2,813,707 |
|
$ |
703,415 |
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