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ENGLEWOOD, Colo. - On Thursday, EchoStar Corporation (NASDAQ:SATS) reported third-quarter revenue of $3.61 billion, falling short of analyst expectations of $3.73 billion, as the company continues its transformation following major spectrum transactions.
The company’s shares rose 1.98% in pre-market trading following the earnings release.
The telecommunications company posted a significant loss with adjusted earnings per share of -$44.37, largely due to a one-time, non-cash impairment charge of $16.48 billion related to the abandonment and decommissioning of portions of its 5G network. This decision followed two major spectrum transactions announced in the quarter – a $22.65 billion deal with AT&T and a $19 billion agreement with SpaceX.
EchoStar’s revenue declined compared to the $3.89 billion reported in the same quarter last year. The company’s stock movement suggests investors are looking beyond the revenue miss to focus on operational improvements in key segments.
"EchoStar will soon be in the unique position of having substantial available capital, vastly changing its scope of opportunities," said Hamid Akhavan, CEO of the newly formed EchoStar Capital division. "Through EchoStar Capital we will fuel EchoStar’s growth into new and complementary arenas."
The company’s wireless segment showed strength with 223,000 net subscriber additions in the quarter, bringing its total to approximately 7.52 million subscribers. Churn improved by 13 basis points YoY, while average revenue per user increased 2.6% compared to the same period last year.
In the Pay-TV segment, which includes DISH TV and Sling TV, DISH TV churn reached a historic third-quarter low of 1.33%, improving 14 basis points YoY. Sling TV added approximately 159,000 subscribers during the quarter.
The company also announced an amended agreement with SpaceX to sell its unpaired AWS-3 wireless spectrum for $2.6 billion in SpaceX stock, further strengthening its financial position as it pivots toward new growth opportunities.
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