Hughes Network Services Posts 2007 Financial Results
"HNS delivered strong financial results in 2007," said Pradman Kaul,
president and chief executive officer. Revenues increased by 13% over 2006 to $970 million and our profitability in 2007 was also very strong.
Operating Income for the year was $90 million, a growth of 56% over 2006; EBITDA* increased by 28% to $139 million in 2007 over 2006, and Net Income increased by 161% to $50 million. All of the segments showed robust growth. The major revenue growth contributors were the consumer, international and the mobile satellite markets with growth rates of 13%, 11% and 77% respectively in 2007 over 2006. The consumer base grew to 379,900 subscribers at December 31, 2007, a growth of 16% over the subscriber base at December 31, 2006. Our North America and International enterprise groups provided a solid revenue base contributing in aggregate over half of HNS' total revenue in 2007. I am also very pleased to report that we were awarded a record $1.1 billion of new orders in 2007 representing a growth of 30% over 2006."
HughesNet, the company most satellite internet users are familiar with, has positioned itself pretty well to launch their new ka band product, SpaceWay . If successful, SpaceWay will enable HNS to rid itself of many of the expensive leases on Ku band satellite transponders it currently pays for. Profits will soar if Hughes can draw in many of the Enterprise buyers that want products like "point to point" internet - that is, direct (single hop) connections between a company's branches, as an example. It remains to be seen what Hughes will do to motivate commercial and consumer prospects to buy from them rather than the other options like Wildblue, ViaSat's LinkStar and iDirect products like the 3100 NB.
2008 is a year that I believe Wildblue will need to find a path to profitability or HughesNet will steamroll them out of the marketplace. Neither company has very good consumer ratings...in fact, both companies have a reputation for overcrowding, inept customer support and promises way beyond what is delivered. The difference is in profitability - and Hughes is taking care of business in that department. Wildblue is still spilling red ink according to my reading of the tea leaves. Stay tuned!
president and chief executive officer. Revenues increased by 13% over 2006 to $970 million and our profitability in 2007 was also very strong.
Operating Income for the year was $90 million, a growth of 56% over 2006; EBITDA* increased by 28% to $139 million in 2007 over 2006, and Net Income increased by 161% to $50 million. All of the segments showed robust growth. The major revenue growth contributors were the consumer, international and the mobile satellite markets with growth rates of 13%, 11% and 77% respectively in 2007 over 2006. The consumer base grew to 379,900 subscribers at December 31, 2007, a growth of 16% over the subscriber base at December 31, 2006. Our North America and International enterprise groups provided a solid revenue base contributing in aggregate over half of HNS' total revenue in 2007. I am also very pleased to report that we were awarded a record $1.1 billion of new orders in 2007 representing a growth of 30% over 2006."
HughesNet, the company most satellite internet users are familiar with, has positioned itself pretty well to launch their new ka band product, SpaceWay . If successful, SpaceWay will enable HNS to rid itself of many of the expensive leases on Ku band satellite transponders it currently pays for. Profits will soar if Hughes can draw in many of the Enterprise buyers that want products like "point to point" internet - that is, direct (single hop) connections between a company's branches, as an example. It remains to be seen what Hughes will do to motivate commercial and consumer prospects to buy from them rather than the other options like Wildblue, ViaSat's LinkStar and iDirect products like the 3100 NB.
2008 is a year that I believe Wildblue will need to find a path to profitability or HughesNet will steamroll them out of the marketplace. Neither company has very good consumer ratings...in fact, both companies have a reputation for overcrowding, inept customer support and promises way beyond what is delivered. The difference is in profitability - and Hughes is taking care of business in that department. Wildblue is still spilling red ink according to my reading of the tea leaves. Stay tuned!
posted by Randy Scott at 5:16 PM
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