/PRCWT/Guangzhou, February 23, 2023——EchoStar Corporation (NASDAQ: SATS) announced its financial results for the three and twelve months ended December 31, 2022.
Three Months Ended December 31, 2022 Financial Highlights:
Consolidated revenue of $499.9 million.
Net income of $47.6 million, consolidated net income attributable to EchoStar common stock of $49.3 million, and basic and diluted earnings per share of common stock of $0.59
Consolidated Adjusted EBITDA of $163.6 million (see discussion and the reconciliation of GAAP to this non-GAAP measure below).
Twelve Months Ended December 31, 2022 Financial Highlights:
Consolidated revenue of $2.0 billion.
Net income of $166.5 million, consolidated net income attributable to EchoStar common stock of $177.1 million, and basic and diluted earnings per share of common stock of $2.10.
Consolidated Adjusted EBITDA of $656.0 million (see discussion and the reconciliation of GAAP to this non-GAAP measure below).
"The EchoStar team finished 2022 with a solid performance, continuing to optimize operations and asset yields," said Hamid Akhavan, CEO and President of EchoStar. "In the near term, we remain focused on operating the business in an efficient manner and preparing for the launch of our upcoming EchoStar XXIV/JUPITER 3 satellite as a catalyst for new growth. We have also made tangible strides toward expanding our future capabilities as we begin construction on a global S-band mobile satellite service network."
Three Months Ended December 31, 2022 - Additional Information:
Consolidated revenue increased year over year. Higher equipment sales of $33.1 million to our domestic and international enterprise customers was offset by lower service revenues of $31.9 million, primarily due to lower broadband consumer customers.
Adjusted EBITDA increased 2.5% or $4.0 million year over year.
Hughes segment Adjusted EBITDA increased $4.2 million year over year. The increase was driven primarily by lower sales and marketing expense for our broadband consumer business.
ESS segment Adjusted EBITDA increased $2.1 million year over year primarily due to higher revenue.
Corporate and Other segment Adjusted EBITDA decreased $2.3 million year over year. The decrease was primarily due to higher corporate expenses, partially offset by higher earnings of unconsolidated affiliates, net, of $1.3 million.
Net income increased $127.7 million year over year. The increase was primarily due to higher operating income of $16.0 million, a favorable change in net interest expense of $17.0 million, a favorable change in investments of $42.5 million, and $55.3 million related to the impairment of our Dish Mexico equity investment that occurred in 2021. These items were partially offset by higher net income tax expense of $12.7 million.
Hughes broadband subscribers totaled approximately 1,228,000, declining 57,000 from September 30, 2022. Our current capacity limitations and increased competitive pressures are impacting our consumer subscriber levels. In Latin America, subscriber levels were also impacted by adverse economic conditions and capacity allocation to Community Wi-Fi and enterprise opportunities.
For the three months ended December 31, 2022, approximately 42% of Hughes segment revenue was attributable to our enterprise customers, increasing from 35% in the same period last year. The increase supports our strong focus on our enterprise business and diversification objectives.
Cash, cash equivalents and current marketable investment securities were $1.7 billion as of December 31, 2022.
The JUPITER 3/EchoStar XXIV satellite is expected to be launched during the second quarter of 2023.
