EchoStar Reports First Quarter 2006 Financial Results

[Scott Greczkowski]

EchoStar Reports First Quarter 2006 Financial Results

ENGLEWOOD, Colo., May 11, 2006 – EchoStar Communications Corporation (NasdaqISH) reported total revenue of $2.29 billion for the quarter ended March 31, 2006, a 13 percent increase compared with $2.02 billion for the corresponding period in 2005.

Net income totaled $147 million for the quarter ended March 31, 2006, compared with net income of $318 million during the corresponding period in 2005. Basic earnings per share was $0.33 for the quarter ended March 31, 2006, compared with a basic income per share of $0.70 during the corresponding period in 2005. Net income for the quarter ended March 31, 2006, includes a $23 million charge related to early redemption of debt securities during the quarter and a $74 million charge related to the Tivo litigation. Net income for the quarter ended March 31, 2005, included a $134 million gain related to settlement of our EchoStar IV insurance claim.

DISH Network™ added approximately 225,000 net new subscribers during the first quarter of 2006, ending the quarter with approximately 12.265 million subscribers.

Detailed financial data and other information are available in EchoStar’s Form 10-Q for the quarterly period ended March 31, 2006, filed with the Securities and Exchange Commission.

About EchoStar Communications

EchoStar Communications Corporation (NASDAQ: DISH) serves more than 12.265 million satellite TV customers through its DISH NetworkÔ, and is a leading U.S. provider of advanced digital television services. DISH Network’s services include hundreds of video and audio channels, Interactive TV, HDTV, sports and international programming, together with professional installation and 24-hour customer service. EchoStar has been a leader for more than 25 years in satellite TV equipment sales and support worldwide. EchoStar is included in the Nasdaq-100 Index (NDX) and is a Fortune 500 company. Visit EchoStar's Web site at <www.echostar.com> or call 1-800-333-DISH (3474).

EchoStar will host its First Quarter 2006 earnings conference call today at noon ET. The call will be broadcast live from EchoStar's website, www.echostar.com. To access the webcast of this event, go to www.echostar.com, then select "Investor Relations." A one-time replay of the webcast will be available on the investor relations page of www.echostar.com on May 11, 2006, at 9 p.m. ET.

 

[HokieEngineer]

I'm no financial expert, but it appears they didn't do too bad considering the tivo charge this quarter against the insurance settlement last year. Taking those one time charges out of the picture, the income was up 37 Million.

 

[MikeD-C05]

Directv was down on new subs too compared to last quarter- 250,000 vs 550,000. I think that the competition is heating up and that bundeling phone, internet and video is taking it's toll on the sat providers. Price is a factor as well. The sat companies are no longer always the cheapest source for tv.

 

[David Dietzel]

Subs are down in part because of high energy costs -- gasoline, natural gas, electricity, etc. are combining to squeeze the budgets of many households.

Non-essential spending is being cut back by many families and for quite a few people, pay television is considered expendable when money starts to get tight.

 

[navychop]

Well, at least they are making money. More than D* has been able to do, most of the time.

We want them to be a good, solid, profitable company. I think I'd go OTA only if my only other choice were to be the local cableco.

 

[Bruce]

Subs are down in part because of high energy costs -- gasoline, natural gas, electricity, etc. are combining to squeeze the budgets of many households.

Non-essential spending is being cut back by many families and for quite a few people, pay television is considered expendable when money starts to get tight.

Bull, then why this-

Aryeh Bourkoff, an analyst with UBS, anticipated EchoStar would report lower subscriber numbers in a note previewing the company's earnings after Comcast, Charter and Insight Communications reported strong first-quarter operating results and subscriber growth.
They are getting beat by the feared bundled services that cable can offer.

More-

Dish, which has more than 12 million customers, reported slower subscriber growth as marketing partner AT&T focused efforts on its own planned video service and cable rivals stepped up competition with a bundle of phone, video and Internet services. EchoStar added a net 225,000 customers, 100,000 fewer than a year earlier.


Both D* and E* need to figure out how to do broadband or team up with someone who does, from there they then can offer a Vonage type of service, then they would have bundled services.

If they ( D* and E* ) just stay the course and focus on TV only, they will get passed by, not only by cable, but also Verizon and At&T when they really get going, Cable Companies smells blood and they will turn it up even more.

D* and E* really need to start sucking up to customers, both new and old, one example is the $299.00 fee just for the right to lease the HD/DVR box, call cable up, get one at no up-front charge, if Cable can do this why not D*/E*.

http://www.rockymountainnews.com/drmn/tech/article/0,2777,DRMN_23910_4689206,00.html

 

[txfeinbergs]

Bull, then why this-

A little hostile aren't we? He said "in part". I agree with him fully. I had cut back my programming extensively on DirecTV for many months prior to finally switching to Dish.... and I switched to Dish because Dish was cheaper. If bundling saved me money, then I would be interested in it, but the so-called "savings" aren't really that great if there is any at all once you look into the fine print.

 

[jlhugh]

I could live on 147 million for a year.

 

[Stargazer]

DirecTv is kicking their butt. I know of numerous people that have already switched from Dish Network to DirecTv to get up to four free boxes, free movie channels, and no credit card is required to get the free hardware. It is no wonder why Dish's business is down and that their churn is probably up.

They added all of those local markets to compete against cable, now its time to add the hight speed internet/phone service like they are in order to do the next round of competition. I read where Dish and Direct were going to try to get together to bring about high speed internet wirelessly. This is greatly needed if they are going to make it. IPTV is going to be the future of television so there will have to be something to compete against that if they want to make it in order to give the consumers some type of advantage.

 

[navychop]

Obviously not. From published figures, both added about the same number of subs in the first quarter. And from reading the D* oriented forums, it seems a lot of folks there are looking toward Dish.

The grass is always greener...

And the HD may not be perfect, but the E* HD PQ is better...

 

[Van]

DirecTv is kicking their butt. .

Propagandist Bullsh!t, people jump back and forth and back and forth from dish to direct to comcast back to dish to direct ect ect ect. I can sit here and say the same damned thing about how every day I am switching 2 - 3 people over from directv and 2 - 3 people from comcast. I can also say that when I drive down any given road out in the country through the small towns that dont have decent cable, that on any day the dish types change back and forth on the houses like the changing of the guard.

 

[Van]

I dont think that Dish or Directv need to suck up to any of theyr customers, this whole idea that people should get everything free hurts the consumer more than it helps. Sure you can say " well comcast will give you a free hd dvr, see dish do that " ok and how much will your monthly bill be and do you know how good the chance is that that cable hd dvr will be a used box that came from Jo Bob three streets over who just cancelled his service because of the cost.

 

[whazoo]

dish network and poor choice

I don't expect D* to suck up to me. I just don't enjoy a company that treats its customers like they are idiots.

I am an ex-VOOM zub. (til the bitter end.) Only reluctantly went to cable because I was not going to pay $300 to LEASE a High-Def DVR. Added benefit was that I could record from it to D-VHS.

Now I have moved and last week called D*. Was told I could no longer get VOOM package added ala carte. I had hoped to get the new AmFamily package and add VOOM. We miss Boomerang which was included with the basic VOOM package.

Instead, in order to add HD at all to the package, we would have to pay $29.99 a month. Or, get HDGold. Which is back up to the AT180 deal again.

Worse yet. They're already insisting on the one dish rule. I would be unable to get the VOOM channels that are in MPEG2. Sorry, but a broadcast engineer, I see some annoying results that occur when material previously in MPEG2 gets converted to MPEG4.

If D* would let me get the VOOM by itself, OR even let me point my own dish at 61.5 and get the decent PQ, I might still sign up. I could even afford the $300 for the HD DVR this year.

Why is D* now offering less choice to their potential subs than cable does?
I would like to point out that HD Bronze/Silver/Gold don't count since HD is included with digital cable on most systems when you get an HD box. I don't get charged $30 extra every month.

My local cable company offers me digital cable with HD and Boomerang included for less than $55 total all lease fees reco very costs etc. included.

 

[Minsk1]

I don't expect D* to suck up to me.
...
My local cable company offers me digital cable with HD and Boomerang included for less than $55 total all lease fees reco very costs etc. included.

1. D* = DirecTV, E* = Dish Network (EchoStar).
2. If you like your cable co, stay with your cable co.

 

[SaltiDawg]

...

The grass is always greener...

...

Except at sea.

 

[JMikeF]

If Verizon deliveres on their promise of true IPTV, I'll drop Dish like a hot 'tater.