EchoStar Posts Profit on Subscriber Growth

EchoStar Communications Corp. reported a third-quarter profit against a loss last year, as it added 360,000 new subscribers during the quarter, exceeding expectations.

EchoStar, which operates the Dish Network and is aiming to take over larger rival Hughes Electronics Corp., reported a profit of $3.1 million, or 1 cent a share, compared with a loss of $142.3 million, or 30 cents a share a year ago.

The Wall Street consensus estimate was a loss of 3 cents a share, with a range of a loss of 6 cents to nil cents a share, as compiled by Thomson Financial/First Call.

Revenue climbed 46% to $1.02 billion from $698 million.

EchoStar said it added 360,000 net new subscribers, bringing its total subscribers to 6.43 million. Net subscriber adds rose 3% from 350,000 in the second quarter, but fell 21% from 455,000 in the year-ago period. Analysts on average expected net subscriber additions to total 350,000, with a range of 300,000 to 385,000.

EchoStar attributed the decline from a year ago to increased churn, incentives for digital service, piracy of competitor products and a maturing market.