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EchoStar shares drop by 6% after posting worse-than-expected Q2 results

EditorRachael Rajan
Published 2024-08-09, 07:58 a/m
© Reuters.
SATS
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ENGLEWOOD, Colo. - EchoStar Corporation (NASDAQ:SATS) reported a wider-than-expected loss and revenue miss for the second quarter, sending shares tumbling 6.13% in trading.

The satellite and television services provider posted a loss of $0.76 per share for Q2, significantly worse than analysts' estimates of a $0.35 per share loss. Revenue came in at $3.95 billion, falling short of the $3.98 billion consensus forecast and declining 9.3% YoY from $4.36 billion.

EchoStar's net loss attributable to the company widened to $205.6 million in Q2, compared to net income of $212.7 million in the same period last year. The company cited lower revenue across its Pay-TV, Retail Wireless, and Broadband segments as key factors impacting results.

"The EchoStar team continued to perform as planned in the second quarter of 2024. We directed efforts on aligning key business synergies and objectives, focusing on profitable customer acquisition and retention efforts, and making improvements in our go-to-market approach for Retail Wireless," said Hamid Akhavan, president and CEO of EchoStar.

The company lost approximately 104,000 net Pay-TV subscribers in Q2, though this was an improvement from 294,000 net losses in the year-ago quarter. EchoStar ended the quarter with 8.07 million Pay-TV subscribers.

Management noted they are in "constructive discussions to address necessary financing" and are working to strengthen consumer offerings and drive profitability across the enterprise.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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