EchoStar takes on DISH satellite as revs rise but profits plummet in 2013
Editor | 22-02-2014
Despite reporting a strong end to 2013 revenues-wise, US satellite firm EchoStar has endured a tough year as regards its profitability.
For the fiscal year ending 31 December 2013 the company banked $3.282 billion compared with $3.122 billion for the corresponding period in 2012. For the fourth quarter ended at the same time, the firm had total revenue of $808 million compared with $786 million a year earlier.
However the optimism of revenues was wiped out by poor profit performance. EchoStar reported net income $4.5 million for the quarter and $2.5 million for the full year respectively. This compared with $26.2 million and $211 million in 2012ís corresponding periods.
Looking forward to 2014, EchoStar has just reached agreement with DISH Network for a strategic transaction, effective 1 March 2014 whereby it and its subsidiaries will receive five satellites along with related liabilities for in-orbit incentive payments to the manufacturers of some of those satellites, and approximately $11 million in cash from DISH in exchange for two issues of preferred tracking stock .
The DISH-owned satellites being transferred to EchoStar are EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV. As a result, EchoStarís owned and leased fleet will expand to a total of 17 satellites and is expecting to generate approximately $145 million of incremental revenue from the new satellites in 2014.