EchoStar Announces Financial Results for the Three and Nine Months Ended September 30, 2024

ENGLEWOOD, Colo., Nov. 12, 2024 /PRNewswire/ — EchoStar Corporation (NASDAQ: SATS) announced its financial results for the three and nine months ended September 30, 2024.

Nine Months Ended September 30, 2024:

  • EchoStar reported total revenue of $11.86 billion for the nine months ended September 30, 2024, compared to $12.85 billion in the year ago period.
  • Net loss attributable to EchoStar in the first three quarters of 2024 was $454.78 million, compared to net income of $327.83 million in the year-ago period. Diluted loss per share was $1.67, compared to earnings per share of $1.06 in the year-ago period.
  • Consolidated OIBDA totaled $1.23 billion for the nine months ended September 30, 2024, compared to $1.69 billion in the year-ago period. (See OIBDA definition and non-GAAP reconciliation below.)

“The EchoStar team continued to execute against our plan in the third quarter. Our efforts focused on profitable customer acquisition and retention, strengthening our consumer offerings and enhancing our nationwide Open RAN 5G network,” said Hamid Akhavan, president and CEO, EchoStar Corporation. “In addition, we recently announced a series of transformative transactions that will disrupt the wireless and pay-TV industries. We secured financing to meet our November debt maturity and announced an agreement with a group of our convertible note holders. This last transaction provides approximately $5.2 billion in additional financing and extends payment terms for the existing convertible notes tendered. In addition, we agreed to sell our pay-TV business to DIRECTV, subject to successful completion of an ongoing exchange and other closing conditions.”

Three Months Ended September 30, 2024:

  • Net Pay-TV subscribers decreased approximately 43,000 in the third quarter, compared to a decrease of 64,000 in the year-ago quarter. Sling TV subscribers increased 145,000 in the third quarter, compared to a 117,000 increase in the year-ago quarter. The company closed the third quarter with 8.03 million Pay-TV subscribers including 5.89 million DISH TV subscribers and 2.14 million SLING TV subscribers. This decrease in net Pay-TV subscriber losses resulted from higher net SLING TV subscriber additions in the third quarter compared to the year-ago quarter and a lower DISH TV churn rate, offset by lower gross new DISH TV subscriber activations.
  • Retail Wireless subscribers, excluding Affordable Connectivity Program (“ACP”) subscribers, increased approximately 62,000 in the third quarter. The company closed the third quarter with 6.98 million Retail Wireless subscribers. Retail Wireless net subscribers decreased by approximately 297,000 in the third quarter, compared to a decrease of 225,000 in the year-ago quarter. The increase in net retail wireless subscriber losses resulted from net losses of government subsidized subscribers, including ACP subscribers, compared to net additions in the year ago quarter, primarily due to the ACP program funding concluding on June 1, 2024. The third quarter was positively impacted by a lower retail wireless churn rate.
  • The company closed the third quarter with 912,000 Broadband Satellite subscribers, a decrease of approximately 43,000 in the quarter, compared to 59,000 in the year-ago quarter. The decrease in net Broadband Satellite subscriber losses was primarily due to the new EchoStar XXIV (Jupiter 3) satellite service launch and increased subscriber demand for our new satellite service plans. The third quarter was negatively impacted by the ACP program funding concluding on June 1, 2024.

Set forth below is a table highlighting certain of EchoStar’s segment results for the three and nine months ended September 30, 2024 and 2023 (all U.S. GAAP amounts reference results from operations):

For the Three Months Ended
September 30,

For the Nine Months Ended
September 30,

2024

2023

2024

2023

(in thousands)

Revenue

Pay-TV

$     2,618,031

$    2,807,101

$     8,020,893

$    8,754,372

Retail Wireless

895,949

890,980

2,693,330

2,794,087

5G Network Deployment

43,227

29,916

108,245

67,902

Broadband and Satellite Services

386,709

413,073

1,163,306

1,305,779

All Other & Eliminations

(52,932)

(32,196)

(127,196)

(69,138)

Total

$     3,890,984

$    4,108,874

$   11,858,578

$  12,853,002

Net Income (loss) attributable to EchoStar

$      (141,812)

$     (138,371)

$      (454,779)

$       327,825

OIBDA

Pay-TV

$        676,003

$       675,565

$     2,184,514

$    2,271,638

Retail Wireless

(90,755)

(105,617)

(174,268)

(130,275)

5G Network Deployment

(330,737)

(299,146)

(977,319)

(813,597)

Broadband and Satellite Services

77,526

112,957

239,205

393,339

All Other & Eliminations

(15,370)

(17,897)

(43,153)

(31,289)

Total

$        316,667

$       365,862

$     1,228,979

$    1,689,816

Purchases of property and equipment, net of refunds, (including capitalized
interest related to regulatory authorizations)

Pay-TV

$         53,357

$        64,331

$        165,275

$       167,524

5G Network Deployment

396,596

852,169

1,506,237

2,907,102

Broadband and Satellite Services

44,913

79,164

172,083

172,251

Total

$        494,866

$       995,664

$     1,843,595

$    3,246,877

 

Reconciliation of GAAP to Non-GAAP Measurement:

For the Three Months 
Ended September 30, 2024

Pay-TV

Retail Wireless

5G Network
Deployment

Broadband and
Satellite Services

Consolidated 

Eliminations

(In thousands)

Segment operating income (loss)

$

588,501

$

(113,792)

$

(600,270)

$

(36,116)

$

910

$

(160,767)

Depreciation and amortization

87,502

23,037

269,533

113,642

(16,280)

477,434

OIBDA

$

676,003

$

(90,755)

$

(330,737)

$

77,526

$

(15,370)

$

316,667

For the Three Months 
Ended September 30, 2023

Segment operating income (loss)

$

589,465

$

(168,166)

$

(463,105)

$

9,991

$

466

$

(31,349)

Depreciation and amortization

86,100

62,549

163,959

102,966

(18,363)

397,211

OIBDA

$

675,565

$

(105,617)

$

(299,146)

$

112,957

$

(17,897)

$

365,862

For the Nine Months Ended 
September 30, 2024

Pay-TV

Retail Wireless

5G Network
Deployment

Broadband and
Satellite Services

Consolidated 

Eliminations

(In thousands)

Segment operating income (loss)

$

1,926,361

$

(309,571)

$

(1,749,961)

$

(110,256)

$

2,047

$

(241,380)

Depreciation and amortization

258,153

135,303

772,642

349,461

(45,200)

1,470,359

OIBDA

$

2,184,514

$

(174,268)

$

(977,319)

$

239,205

$

(43,153)

$

1,228,979

For the Nine Months Ended
September 30, 2023

Segment operating income (loss)

$

1,985,490

$

(298,872)

$

(1,198,667)

$

81,543

$

4,724

$

574,218

Depreciation and amortization

286,148

168,597

385,070

311,796

(36,013)

1,115,598

OIBDA

$

2,271,638

$

(130,275)

$

(813,597)

$

393,339

$

(31,289)

$

1,689,816

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 EchoStar for the period ended September 30, 2024, are attached to this press release. Detailed financial data and other information are available in EchoStar’s Form 10-Q for the period ended September 30, 2024, filed today with the Securities and Exchange Commission.

EchoStar will host a conference call to discuss its earnings on Tuesday, November 12, 2024, at 11 a.m. Eastern Time. The conference call will be broadcast live in listen-only mode on EchoStar’s investor relations website at ir.echostar.com. To attend the call, please dial: (877) 484-6065 (U.S.) and (201) 689-8846. When prompted on dial-in, please utilize the conference ID (13750022) or ask for the “EchoStar Corporation Q3 2024 Earnings Conference Call.” Please dial in at least 10 minutes before the call to ensure timely participation.

About EchoStar Corporation
EchoStar Corporation (Nasdaq: SATS) is a premier provider of technology, networking services, television entertainment and connectivity, offering consumer, enterprise, operator and government solutions worldwide under its EchoStar®, Boost Mobile®, Sling TV, DISH TV, Hughes®, HughesNet®, HughesON™, and JUPITER™ brands. In Europe, EchoStar operates under its EchoStar Mobile Limited subsidiary and in Australia, the company operates as EchoStar Global Australia. For more information, visit www.echostar.com and follow EchoStar on X (Twitter) and LinkedIn.

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 EchoStar’s Annual Report on Form 10-K for the period ended December 31, 2023, and subsequent quarterly reports on Form 10-Q as filed with the Securities and Exchange Commission and in the other documents EchoStar files with the Securities and Exchange Commission from time to time.

ECHOSTAR CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share amounts)

(Unaudited)

As of  

 September 30, 

December 31,

2024

2023

Assets

Current Assets:

Cash and cash equivalents

$

622,608

$

1,821,376

Current restricted cash and cash equivalents

2,047,489

Marketable investment securities

51,792

623,044

Trade accounts receivable, net of allowance for credit losses of $82,427 and
$74,390, respectively

1,099,545

1,122,139

Inventory

441,683

665,169

Prepaids and other assets

649,802

644,005

Other current assets

87,458

16,081

Total current assets

5,000,377

4,891,814

Noncurrent Assets:

Restricted cash, cash equivalents and marketable investment securities 

156,323

118,065

Property and equipment, net 

9,287,726

9,561,834

Regulatory authorizations, net

39,156,029

38,572,980

Other investments, net

216,139

314,370

Operating lease assets

3,158,548

3,065,448

Intangible assets, net 

79,078

172,892

Other noncurrent assets, net

493,157

411,491

Total noncurrent assets

52,547,000

52,217,080

Total assets

$

57,547,377

$

57,108,894

Liabilities and Stockholders’ Equity (Deficit)

Current Liabilities:

Trade accounts payable

$

707,476

$

774,011

Deferred revenue and other

645,719

754,658

Accrued programming

1,499,375

1,427,762

Accrued interest

406,619

297,678

Other accrued expenses and liabilities

1,699,434

1,717,826

Current portion of debt, finance lease and other obligations

2,520,297

3,046,654

Total current liabilities

7,478,920

8,018,589

Long-Term Obligations, Net of Current Portion:

Long-term debt, finance lease and other obligations, net of current portion

21,557,251

19,717,266

Deferred tax liabilities, net

4,926,162

5,014,309

Operating lease liabilities 

3,125,819

3,121,307

Long-term deferred revenue and other long-term liabilities

958,931

849,131

Total long-term obligations, net of current portion

30,568,163

28,702,013

Total liabilities

38,047,083

36,720,602

Commitments and Contingencies

Redeemable noncontrolling interests

438,382

Stockholders’ Equity (Deficit): 

Class A common stock, $0.001 par value, 1,600,000,000 shares authorized,
140,480,742 and 140,153,020 shares issued and outstanding, respectively

140

140

Class B common stock, $0.001 par value, 800,000,000 shares authorized,
131,348,468 shares issued and outstanding

131

131

Additional paid-in capital

8,337,211

8,301,979

Accumulated other comprehensive income (loss)

(177,764)

(160,056)

Accumulated earnings (deficit)

11,283,204

11,737,983

Total EchoStar stockholders’ equity (deficit)

19,442,922

19,880,177

Noncontrolling interests

57,372

69,733

Total stockholders’ equity (deficit)

19,500,294

19,949,910

Total liabilities and stockholders’ equity (deficit)

$

57,547,377

$

57,108,894

 

ECHOSTAR CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 

(Dollars in thousands, except per share amounts)

(Unaudited)

For the Three Months
Ended September 30, 

For the Nine Months
Ended September 30, 

2024

2023

2024

2023

Revenue:

Service revenue

$

3,671,674

$

3,942,308

$

11,233,429

$

12,211,542

Equipment sales and other revenue

219,310

166,566

625,149

641,460

Total revenue

3,890,984

4,108,874

11,858,578

12,853,002

Costs and Expenses (exclusive of depreciation and amortization):

Cost of services

2,538,149

2,368,621

7,602,809

7,222,761

Cost of sales – equipment and other 

393,024

612,378

1,164,200

1,715,936

Selling, general and administrative expenses

643,144

762,013

1,862,590

2,221,347

Depreciation and amortization 

477,434

397,211

1,470,359

1,115,598

Impairment of long-lived assets and goodwill

3,142

Total costs and expenses

4,051,751

4,140,223

12,099,958

12,278,784

Operating income (loss)

(160,767)

(31,349)

(241,380)

574,218

Other Income (Expense):

Interest income, net

11,200

43,915

55,591

166,409

Interest expense, net of amounts capitalized

(81,503)

(21,795)

(262,077)

(63,476)

Other, net

52,107

(168,947)

(65,501)

(169,640)

Total other income (expense)

(18,196)

(146,827)

(271,987)

(66,707)

Income (loss) before income taxes

(178,963)

(178,176)

(513,367)

507,511

Income tax (provision) benefit, net

35,162

59,439

53,733

(120,711)

Net income (loss)

(143,801)

(118,737)

(459,634)

386,800

Less: Net income (loss) attributable to noncontrolling interests, net of tax

(1,989)

19,634

(4,855)

58,975

Net income (loss) attributable to EchoStar

$

(141,812)

$

(138,371)

$

(454,779)

$

327,825

Weighted-average common shares outstanding – Class A and B common stock: 

Basic

271,736

271,245

271,616

270,637

Diluted

271,736

271,245

271,616

308,259

Earnings per share – Class A and B common stock:

Basic net income (loss) per share attributable to EchoStar

$

(0.52)

$

(0.51)

$

(1.67)

$

1.21

Diluted net income (loss) per share attributable to EchoStar

$

(0.52)

$

(0.51)

$

(1.67)

$

1.06

 

ECHOSTAR CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands) 

(Unaudited)

For the Nine Months Ended September 30, 

2024

2023

Cash Flows From Operating Activities:

Net income (loss)

$

(459,634)

$

386,800

Adjustments to reconcile net income (loss) to net cash flows from operating activities:

Depreciation and amortization

1,470,359

1,115,598

Impairment of long-lived assets and goodwill

3,142

Realized and unrealized losses (gains) on investments, impairments and other

41,929

(24,866)

Realized and unrealized losses (gains) on derivatives

192,107

Liberty Puerto Rico Asset Sale losses (gains)

(50,418)

Non-cash, stock-based compensation

28,298

37,729

Deferred tax expense (benefit)

(85,300)

103,614

Equity in (earnings) losses of affiliates

74,459

6,671

Changes in allowance for credit losses

8,037

8,638

Change in long-term deferred revenue and other long-term liabilities

15,996

9,122

Other, net

137,700

80,665

Changes in current assets and current liabilities, net

25,718

102,330

Net cash flows from operating activities

1,207,144

2,021,550

Cash Flows From Investing Activities:

Purchases of marketable investment securities

(29,166)

(2,384,614)

Sales and maturities of marketable investment securities

563,421

3,092,693

Purchases of property and equipment

(1,200,606)

(2,533,745)

Refunds and other receipts of purchases of property and equipment

34,611

Capitalized interest related to regulatory authorizations

(642,989)

(747,743)

Proceeds from other debt investments

148,448

Purchases of regulatory authorizations, including deposits 

(1,104)

(1,802)

Sale of assets to CONX

26,719

Liberty Puerto Rico Asset Sale

95,435

Other, net

10,892

(17,258)

Net cash flows from investing activities

(1,177,398)

(2,409,410)

Cash Flows From Financing Activities:

Repayment of long-term debt, finance lease and other obligations

(101,197)

(98,933)

Redemption and repurchases of convertible and senior notes

(951,170)

(1,634,084)

Proceeds from issuance of senior notes

1,500,000

Debt issuance costs and debt (discount) premium

21,635

Proceeds from New DISH DBS Financing

2,500,000

Debt issuance costs and debt (discount) premium from New DISH DBS Financing

(136,208)

Early debt extinguishment gains (losses) of convertible and senior notes

72,566

Net proceeds from Class A common stock options exercised and stock issued under the Employee Stock Purchase Plan

4,347

11,570

Purchase of SNR Management’s ownership interest in SNR HoldCo

(441,998)

Other, net

(4,185)

(5,997)

Net cash flows from financing activities 

869,589

(133,243)

Effect of exchange rates on cash and cash equivalents

(3,458)

1,622

Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents

895,877

(519,481)

Cash, cash equivalents, restricted cash and cash equivalents, beginning of period

1,911,601

2,561,803

Cash, cash equivalents, restricted cash and cash equivalents, end of period

$

2,807,478

$

2,042,322

 

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SOURCE EchoStar Corporation

EchoStar Announces Financial Results for the Three and Nine Months Ended September 30, 2024 WeeklyReviewer

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