Strangelet
June 11th, 2001, 06:31 PM
From the AP wire... I especially like the spin on how fewer subscribers actually helps their cash flow. LOL
"AP-NY-06-11-01 2023EDT
Hughes Warns of Lower Q2 Earnings
EL SEGUNDO, Calif. (AP) -- Hughes Electronics Corp., which runs the satellite television service DirecTV, said Monday that revenue for the second quarter and the year would be lower than expected because of slow sales caused by the sluggish economy.
The company warned it expects revenue growth for the year to be about 20 percent, instead of the 20 percent to 25 percent previously expected.
Hughes said revenues for the year will be $5.5 billion to $5.7 billion, instead of the $5.6 billion to $5.8 billion previously forecast.
''We expect that our DirecTV business in the United States will add fewer net subscribers than we originally anticipated this quarter, and for the full year,'' Jack Shaw, Hughes chief executive officer, said in a press release.
Fewer subscribers will actually help the company's cash flow because of lower marketing expenses, the company said. Hughes told Wall Street analysts it expected earnings before interest, taxation, depreciation and amortization, or EBITDA, to be about $75 million for the quarter, instead of the $60 million to $75 million previously expected.
Shaw said the company will increase its marketing efforts, targeting cable television subscribers who might be fed up with higher rates and poor service. Hughes will also intensify its marketing to the approximately 60 million households where DirecTV offers access to local channels and positions itself as a direct alternative to cable television, Shaw said.""
"AP-NY-06-11-01 2023EDT
Hughes Warns of Lower Q2 Earnings
EL SEGUNDO, Calif. (AP) -- Hughes Electronics Corp., which runs the satellite television service DirecTV, said Monday that revenue for the second quarter and the year would be lower than expected because of slow sales caused by the sluggish economy.
The company warned it expects revenue growth for the year to be about 20 percent, instead of the 20 percent to 25 percent previously expected.
Hughes said revenues for the year will be $5.5 billion to $5.7 billion, instead of the $5.6 billion to $5.8 billion previously forecast.
''We expect that our DirecTV business in the United States will add fewer net subscribers than we originally anticipated this quarter, and for the full year,'' Jack Shaw, Hughes chief executive officer, said in a press release.
Fewer subscribers will actually help the company's cash flow because of lower marketing expenses, the company said. Hughes told Wall Street analysts it expected earnings before interest, taxation, depreciation and amortization, or EBITDA, to be about $75 million for the quarter, instead of the $60 million to $75 million previously expected.
Shaw said the company will increase its marketing efforts, targeting cable television subscribers who might be fed up with higher rates and poor service. Hughes will also intensify its marketing to the approximately 60 million households where DirecTV offers access to local channels and positions itself as a direct alternative to cable television, Shaw said.""