Wed, Aug 14, 7:08 PM (153 days ago)
For the quarter ended June 30, 2024, Hughes Satellite Systems Corporation reported a significant decline in total revenue to $389.6 million, down 13.6% from $451 million in the same period last year. Service revenue fell by 17.7% due to decreased broadband sales across North America and international markets. The company experienced a net loss of $57.9 million, contrasting sharply with a net income of $3.3 million in 2023. This was attributed to increased costs, notably a 31.5% rise in service costs linked to transponder leases and operational expenses. EBITDA decreased by 64.5% to $44.4 million, highlighting operational challenges. The subscriber base also contracted, with losses of approximately 23,000 broadband subscribers, reflecting ongoing competitive pressures. On the balance sheet, total assets dropped to $3.55 billion from $5.2 billion, driven by cash distributions to EchoStar and reduced marketable securities. The company anticipates leveraging the recently launched EchoStar XXIV satellite to enhance service capacity and address subscriber churn, although uncertainties surrounding future cash flows and operational performance remain.