EchoStar Corporation Reports Financial Results for 2024, Shows Positive Cash Flow Improvement

EchoStar Reports Financial Performance for Year-End 2024

EchoStar Corporation (NASDAQ: SATS), a prominent provider of technology and telecommunications services, released its financial results for the fiscal year ending December 31, 2024.

Key Financial Highlights

During this twelve-month period, EchoStar generated a total revenue of $15.83 billion, marking a decline from $17.02 billion in 2023. This reduction in revenue can primarily be attributed to a decrease in subscribers, particularly in the Pay-TV segment, which experienced the most significant impact.

The company's net loss attributable to EchoStar stood at $119.55 million in 2024, a notable improvement compared to the staggering loss of $1.70 billion reported the previous year. The turnaround in net loss in 2024 benefited from noncash gains related to a debt exchange offer totaling approximately $689 million, while the 2023 loss had been severely impacted by a goodwill impairment worth approximately $758 million and an adjustment on an 800 MHz purchase option leading to a substantial loss of $1.8 billion. Without accounting for these noncash adjustments, the adjusted loss for 2024 would be around $664 million, juxtaposed against a net income of roughly $361 million for 2023.

The diluted loss per share for 2024 was $0.44, a significant recovery from $6.28 in 2023. The company's consolidated Operational Income Before Depreciation and Amortization (OIBDA) amounted to $1.63 billion, compared with $1.32 billion in the prior year, indicating enhanced operational performance.

Subscriber Trends

In the last quarter of 2024, EchoStar saw a decrease of approximately 253,000 net Pay-TV subscribers, which is an improvement from the 314,000 loss experienced in the same quarter a year earlier. At the quarter's close, the company reported 7.78 million total Pay-TV subscribers, comprising 5.69 million from DISH TV and 2.09 million from Sling TV. This shift reflects a reduction in subscriber disconnects, attributable to the company's focus on acquiring higher-quality customers.

In a positive contrast, wireless subscribers (excluding those under the Affordable Connectivity Program) rose by 105,000 in the fourth quarter, culminating in 6.995 million wireless subscribers by year-end. This growth is attributed to a lower churn rate and increased new subscriber activations compared to the previous year.

Furthermore, EchoStar observed that its Broadband Satellite segment ended the quarter with approximately 883,000 subscribers, losing around 29,000 compared to a larger loss of 59,000 in the prior year's quarter. This reduction in losses can be credited to fewer disconnects following the launch of the new EchoStar XXIV satellite service.