Q3 2024 EchoStar Corp Earnings Call Transcript
Key Points
- EchoStar Corp (SATS) successfully restructured its balance sheet, removing the going concern disclosure.
- The company secured $2.5 billion in financing from TPG Angelo Gordon, DIRECTV, and co-investors to address debt maturity and operational needs.
- EchoStar Corp (SATS) issued $400 million in equity via a pipe facility, strengthening its financial position.
- The company reported a 3.4% year-over-year increase in ARPU across its Pay-TV business.
- EchoStar Corp (SATS) expanded its Boost Mobile brand, achieving subscriber growth and improving churn rates.
- EchoStar Corp (SATS) experienced a 5% year-over-year decline in revenue, primarily due to fewer subscribers.
- The company's OIBDA decreased by $49 million year-over-year, driven by higher network operating costs and lower gross margins.
- Free cash flow for Q3 was negative $219 million, largely due to cash interest.
- The end of the ACP program led to additional customer disconnects, impacting churn performance.
- EchoStar Corp (SATS) faces challenges in realizing the full market value of its spectrum assets, which are not reflected in its current market cap.
Welcome to the EchoStar third-quarter 2024 earnings call. (Operator Instructions) As a reminder, this conference is being recorded. I'll now turn the call over to Dean Manson, Chief Legal Officer. Please go ahead, sir.
Thank you. Welcome to EchoStar's third-quarter 2024 earnings call. We will begin with opening remarks from Hamid Akhavan, President and CEO; followed by Paul Orban, EVP and Principal Financial Officer; Gary Schanman, EVP and Group President of Video Services; John Swieringa, President of Technology and COO; and Jeff Boggs, SVP of Finance for Hughes, who is joining us as Paul Gaske is currently traveling for enterprise business meetings.
We request that any participant producing a report, not identify other participants or their firms in such reports. We also do not allow audio recording, which we ask that you respect.
All statements we make during this call, other than statements of historical fact, constitute forward-looking statements made pursuant to the Safe Harbor
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