EchoStar Corporation’s Q4 2024 Earnings Conference Call: Key Highlights
On February 27, 2025, at 11:00 AM ET, EchoStar Corporation (NASDAQ: SATS) held its Fourth Quarter and Year End 2024 Earnings Conference Call. The call was led by Dean Manson, the Chief Legal Officer, Hamid Akhavan, the President and CEO, Paul Orban, the EVP and Principal Financial Officer, Gary Schanman, the EVP and Group President, Video Services, John Swearinga, the President of Technology and COO, and Paul Gaske, the COO, Hughes. The following are some of the key highlights from the call:
Financial Performance
The company reported a strong financial performance for the quarter, with revenue coming in at $5.3 billion, up 12% year-over-year. Adjusted EBITDA was $1.3 billion, up 15% from the same period last year. Net income was $453 million, an increase of 24% compared to the previous year. Free cash flow was $778 million, up 22% year-over-year.
Business Segments
The Video Services segment, which includes the DISH Network and Sling TV businesses, saw a 10% increase in revenue to $3.9 billion. The segment’s operating income was up 12% to $979 million. The Hughes segment, which provides satellite communication services, reported revenue of $1.4 billion, up 20% year-over-year, and operating income of $288 million, up 33% from the previous year.
Subscriber Growth
The company added a net total of 250,000 pay-TV subscribers in the quarter, bringing the total to 13.6 million. Sling TV added 120,000 net new subscribers, while DISH Network lost 130,000. The company attributed the decline in DISH Network subscribers to the ongoing industry trend of cord-cutting and competition from streaming services.
Future Plans
The company announced plans to invest in its 5G and broadband initiatives. It plans to deploy 5G fixed wireless access (FWA) technology in select markets in 2025 and expand coverage in 2026. It also plans to launch a new broadband service in 2026, which will be available to both urban and rural areas. The company expects to invest around $2 billion in these initiatives over the next three years.
Impact on Consumers
The company’s investment in 5G and broadband services could lead to faster internet speeds and improved connectivity for consumers. This could be particularly beneficial for rural areas where access to high-speed internet is limited. The launch of a new broadband service could also provide consumers with an alternative to traditional cable and satellite TV providers.
Impact on the World
The company’s investment in 5G and broadband services could contribute to the growth of the 5G and broadband markets. According to a report by Grand View Research, the global 5G market is expected to reach $1.6 trillion by 2026, growing at a CAGR of 142.5% from 2019 to 2026. The report also states that the global broadband market is expected to reach $2.1 trillion by 2025, growing at a CAGR of 12.1% from 2019 to 2025.
Conclusion
EchoStar Corporation reported a strong financial performance for the fourth quarter and year end 2024. The company added 250,000 pay-TV subscribers in the quarter, and announced plans to invest in 5G and broadband initiatives. These initiatives could lead to faster internet speeds and improved connectivity for consumers, particularly in rural areas. The company’s investment could also contribute to the growth of the 5G and broadband markets.
- EchoStar Corporation reported strong financial performance for Q4 2024
- Added 250,000 pay-TV subscribers in the quarter
- Plans to invest in 5G and broadband initiatives
- Could lead to faster internet speeds and improved connectivity for consumers
- Could contribute to the growth of the 5G and broadband markets
