HughesNet Announces 1Q Results
On May 7, leading international provider of satellite network products and services, HughesNet, revealed its first quarter financial results. HughesNet's operations are divided into four categories: Telecom Systems; North America Broadband; International Broadband; and Corporate and Other.
During 1Q 2009, the Maryland-based company's revenue increased 1% since 2008; 5% on a constant dollar basis. Services revenue increased 9%; 14% on a constant dollar basis. Broadband business revenue increased 5% since 2008; 9% on a constant dollar basis. The first quarter 2009 adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew a record 11%, reaching $33 million.
Overall consumer business was strong:
- Customer net adds also broke records, with an all time high of 22,000 in 1Q 2009.
- Customer gross adds broke records at 53,000 for a remarkable 13% growth since 1Q 2008.
- Consumer average revenue per user was $68.
- Consumer service revenue grew by 14% since 1Q 2008.
- At the end of 1Q 2009, HughesNet's subscriber count totaled 455,000.
HughesNet's new orders totaled $217 million, with major orders from Barrett Xplore, Yum Brands, ConocoPhillips, U.S. Government Educational Training Network in North America; the Brazilian state of Santa Catarina, Vietnam Ministry of Public Service, Intralot, and Afsat in global markets; and from Harris Corp., SkyTerra, and TerreStar in the Telecom Systems division. As of March 31, 2009, non-consumer order backlog totaled $808 million.
Pradman Kaul, President and CEO said, "Hughes continues to deliver strong financial performance, despite the adverse economic climate. I'm especially pleased with our performance in the consumer business, as well as the steady growth in our broadband enterprise business. Our services revenue mix continues to grow very well and in line with our overall strategy. I continue to be optimistic about our near and long-term future."



