EchoStar’s Loss Narrows as Subscribers Increase
EchoStar Communications Corp.’s first-quarter loss narrowed as the second-largest U.S. satellite TV broadcaster added more subscribers than analysts expected and sales rose 28%.
EchoStar’s loss narrowed to $38.6 million, or 20 cents a share, from $169.9 million, or 36 cents, a year earlier. Sales rose to $1.1 billion from $861.9 million.
EchoStar, which has agreed to purchase larger rival Hughes Electronics Corp., added 335,000 subscribers to its Dish Network. Analysts had forecast as many as 315,000 new users. Costs to acquire customers this year will be higher than the $395 per user the company expected because of promotions and greater expenses to help subscribers pay for equipment.
Shares of Littleton, Colo.-based EchoStar dropped $1.35 to $26.26 on Nasdaq.
EchoStar is seeking approval from U.S. regulators to purchase Hughes Electronics, owner of DirecTV satellite service, from General Motors Corp. for $33.4 billion.
The biggest entertainment stories
Get our big stories about Hollywood, film, television, music, arts, culture and more right in your inbox as soon as they publish.
You may occasionally receive promotional content from the Los Angeles Times.
