Q2 2024 EchoStar Corp Earnings Call Transcript
Key Points
- EchoStar Corp (SATS) reported operational improvements in Pay-TV, broadband, and satellite services, with a focus on consumer and enterprise customers.
- The company received approval for the Liberty Puerto Rico transaction, expected to close within 30 days.
- EchoStar Corp (SATS) has doubled the number of Boost Mobile customers since the last quarter, now serving over 0.5 million.
- The HughesNet enterprise business continues to grow, with significant orders domestically and internationally.
- The company is on track to meet its goal of positive operating free cash flow for the year, driven by efficiencies, optimization, and synergies.
- EchoStar Corp (SATS) faces a significant debt maturity of roughly $2 billion in November, with current cash and projected future cash flows insufficient to cover it.
- Revenue for Q2 was $3.95 billion, down 9% year-over-year, primarily due to subscriber declines across all lines of business.
- OIBDA decreased by $181 million year-over-year, driven by increased operating costs and decreased margins from fewer subscribers.
- Free cash flow was negative $191 million, primarily due to cash interest of $450 million.
- The company is experiencing challenges with device compatibility for its 5G network, particularly with older iPhone models.
Greetings, and welcome to the EchoStar Corporation Q2 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Dean Manson, Chief Legal Officer. Thank you, Dean, you may begin.
Thank you and welcome to EchoStar second quarter 2024 earnings call. We will begin with opening remarks Hamid Akhavan, President and CEO; followed by Paul Orban, EVP, and Principal Financial Officer; Gary Schanman, EVP And Group President of Video Services; Paul Gaske, COO of Hughes; and John Swieringa, President of Technology and COO. We request that any participant producing a report not identify other participants or their firms in such report.
We also did not allow audio recording which we have to use that. All statements made during this call, other than statements of historical fact constitute forward-looking statements made pursuant to the Safe Harbor provided by the Private Securities Litigation Reform Act of
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