EchoStar’s Profit Surges as It Adds Satellite TV Customers

EchoStar Communications Corp., the second-biggest U.S. satellite television broadcaster, said fourth-quarter profit almost doubled as the company added 330,000 new customers.

Net income climbed to $133 million, or 30 cents a share, from $70 million, or 15 cents, a year earlier, the Englewood, Colo.-based company said in a statement Wednesday. Revenue rose 13% to $2.18 billion.

Chief Executive Charles Ergen attracted more customers by adding channels including the NFL Network and services such as its PocketDish portable device, which stores TV shows, movies and songs.

EchoStar and larger rival El Segundo-based DirecTV Group Inc. are battling to keep subscribers from moving to cable and phone companies offering packages of phone, TV and Web access.

“The important point is that EchoStar and DirecTV are gaining share versus cable,” said William Jacobs, an analyst at Harris Associates in Chicago, EchoStar’s third-biggest shareholder. “Net new subscriber growth was solid and the company repurchased more shares.”

Share buybacks totaled 7.9 million in the quarter, EchoStar, which operates under the Dish Network name, said in a filing. The company in 2005 bought back 13.6 million shares at an average price of $27.49.

EchoStar shares rose 43 cents to $29.78. They have risen 9.5% this year, while DirecTV shares have gained 11%.

Ergen, 53, pushed EchoStar’s subscribers to 12 million in the quarter and the company’s customer additions exceeded those of DirecTV, which added 200,000 subscribers. DirecTV has 15.1 million customers.

During the fourth quarter, EchoStar and AT&T; Inc. modified an agreement allowing AT&T; to sell Dish Network’s service, which may have boosted subscribers, EchoStar said in the filing.

The proportion of customers EchoStar lost, or monthly churn, was 1.6% in the quarter, up from 1.5% a year earlier.