Hughes' DirecTV Revenue In Q3 Increases 19% To $1.6 Billion
By Jeff Malester -- TWICE, 11/4/2002
EL SEGUNDO, CALIF.— Continued subscriber growth and higher monthly revenue per subscriber accounted for a 19 percent increase in quarterly revenue at DirecTV, part of the Direct-To-Home Broadcast segment at digital television entertainment provider, Hughes Electronics. DirecTV revenue reached $1.6 billion in the third quarter, ended Sept. 30, up from $1.4 billion in the year-ago period.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) for DirecTV during the third quarter was $196 million, about a ten-fold increase and about 31 percent higher than the company's original guidance. Excluding a $48 million one-time charge, EBITDA in the same three months in 2001 was $20 million.
DirecTV operating profit in the third quarter climbed to $94 million, compared with an operating loss, excluding charges, of $93 million in the same quarter last year.
Overall third quarter revenue in Hughes' Direct-To-Home Broadcast segment, by far the company's largest, jumped 13.3 percent, hitting $1.8 billion, up from $1.6 billion in the year-ago three months. The segment reported EBITDA of $139.4 million in the three months, compared with negative EBITDA of $74.2 million the previous year. Its operating loss was reduced to $29.6 million, down from a loss of $245.4 million in the third quarter of 2001.
Consolidated third quarter revenue for Hughes increased 5.3 percent, reaching $2.2 billion, up from $2.1 billion in the year-ago period. EBITDA for the third quarter increased to $243.5 million, compared with $76.5 million year over year. Excluding one-time charges in last year's third quarter, EBITDA was $141.8 million. The consolidated operating loss for the third quarter was reduced to $23 million, compared with an operating loss, excluding charges, of $138 million in the third quarter of 2001.
Net loss was $13.6 million, down from a net loss of $227.2 million in the year-ago period.
In the third quarter, DirecTV added 206,000 net subscribers, compared with the original estimate of 250,000 to 300,000. The shortfall was due to increased churn. The company expects 250,000 to 300,000 net subscriber additions for the fourth quarter. Revised full-year net subscription additions are anticipated at 1 million to 1.05 million, compared with the prior full year expectation of about 1.2 million.
For the nine months, Direct-To-Home Broadcast segment revenue hit $5.2 billion, up from $4.6 billion year over year. The segment reported EBITDA of $97.4 million in the period, compared with negative EBITDA of $69.5 million in the same nine months in 2001.
For the nine months, Hughes consolidated revenue increased 8 percent, to $6.5 billion, up from $6 billion in the year-ago nine months. Net loss for the first nine months totaled $325.1 million, compared with a net loss of $489 million year over year.
