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Hughes Financial Guidance Points Toward Better 2002

11/14/2001 01:31:00 PM Eastern

El Segundo, Calif. - Digital TV entertainment and broadband services provider Hughes Electronics expects to generate revenue of more than $9 billion in 2002, compared with the $8.3 billion it forecasts for 2001.

Hughes' DirecTV business in the United States is expected to lead the way with $6 billion to $6.2 billion in revenue in 2002, compared with an expected $5.5 billion to $5.6 billion in 2001.

Looking at financial targets for next year, Hughes said earnings before interest, taxes, depreciation and amortization (EBITDA) should reach $750 million to $850 million, a 50 percent to 90 percent jump over its forecast for $450 million to $500 million in 2001. This year's estimate excludes the impact of third-quarter 2001 severance charges of $48 million at DirecTV U.S., $65 million at Hughes and $17 million at other DirecTV segments.

DirecTV EBITDA in the United States is forecast at $525 million to $575 million in 2002, compared with $200 million to $250 million in 2001. The 2001 figure also excludes the impact of third-quarter 2001 severance charges.

Net subscriber additions for DirecTV in the United States is forecast at 1 million to 1.2 million in 2001. This compares to an expected 1.2 million to 1.3 million additions in 2001. The 2001 figure excludes the impact of the 143,000 subscriber database adjustment in the third quarter of 2001.

For DirecTV broadband, 2002 revenue is expected to come in at $75 million. EBIDA is forecast at a negative $100 million, compared with a negative $100 million to negative $120 million in 2001.

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