EchoStar’s Q4 Profit Up 90 Percent

Mar 15, 2006  •  Post A Comment

EchoStar Communications reported Wednesday that its fourth-quarter profit surged 90 percent, as the satellite company benefited from onetime gains and subscriber gains. However, the company missed Wall Street’s revenue estimate for the quarter.

The Englewood, Colo.-based company reported earnings of $133 million, up from a year-earlier profit of $70 million. Revenue advanced nearly 13 percent to $2.18 billion, falling shy of Wall Street’s consensus of $2.19 billion.

For the year, EchoStar’s profit hit $1.51 billion, versus $215 million a year ago. Revenue for the year jumped 18 percent to $8.43 billion, compared with a year-earlier $7.15 billion.

The company attributed the year-over-year profit growth to a noncash tax benefit of around $593 million and a $134 million gain tied to the settlement of insurance claims related to a satellite failure.

EchoStar said it added about 330,000 net new subscribers in the quarter, driving the company’s total subscriber base to just over 12 million.