ITV

Tag: HNS

  • DirecTV reports operating profit for 3Q

    DirecTV reports operating profit for 3Q

    MUMBAI: US pay TV platform DirecTV has reported third quarter net income of $95 million compared with a net loss of $1.01 billion last year and operating profit of $156 million compared with an operating loss of $1.55 billion in the same period of 2004.

    In addition, revenues increased by 13 per cent to $3.23 billion and operating profit before depreciation and amortisation improved to $365 million from an operating loss before depreciation and amortisation of $1.35 billion.

    DirecTV president and CEO Chase Carey says, “The more than doubling of operating profit before depreciation and amortisation to $338 million in the quarter provides us with another data point showing the substantial profit-generating potential of DirecTV. Much of this growth was fueled by the 22 per cent increase in revenues to $3.05 billion in the quarter along with higher operating margins attained through improved cost management in key areas such as subscriber acquisition and upgrade and retention marketing.

    “Driven by these accomplishments we generated $230 million of free cash flow in the quarter compared to a negative $151 million in last year’s third quarter. Another highlight in the quarter was gross subscriber additions of 1.1 million, demonstrating the continued consumer demand and strength of our brand and service. This demand — which carried over to October when we added our 15 millionth customer — is particularly meaningful because we have substantially improved the credit profiles of new subscribers due to the stricter credit policy we implemented at the beginning of the second quarter. In fact, we reduced the number of high-risk customers attained in the quarter by approximately 50 per cent compared to last year.

    “However, DirecTV’s average monthly churn rate of 1.89 per cent in the quarter remained unacceptably high primarily due to an increase in involuntary churn of high-risk customers attained in 2004 and early 2005 before the new credit policy was put in place. As we continue to churn out these subscribers and add new customers with better credit, we are confident that we will drive churn lower beginning in the fourth quarter and into 2006. After accounting for churn, DirecTV added 263,000 net subscribers in the quarter.”

    “As we approach the busy holiday selling season, we are excited about the many compelling offers that will be available — including the NFL Sunday Tiecket SuperFan package, our new interactive DVR and the launch of high-definition local channels in a dozen major markets. All of them support our goal of making DirecTV the best television experience available anywhere.”

    The revenue growth was due to due to strong subscriber growth, higher average monthly revenue per subscriber (ARPU), and the consolidation of the full economics of the former National Rural Telecommunications Cooperative (NRTC) and Pegasus Satellite Television (Pegasus) subscribers acquired in the third quarter of 2004. These changes were partially offset by the absence of revenues at Hughes Network Systems (HNS) due to the sale of several HNS business units in 2004 and the sale of a 50 per cent interest in the remaining HNS business in 2005.

    For the first nine months of 2005 revenues of $9.57 billion marked an increased of 20 per cent compared to the same period of 2004.

  • Flextronics takes over Hughes Software in $226 million deal

    Flextronics takes over Hughes Software in $226 million deal

    NEW DELHI / MUMBAI: News Corp owned Hughes Network Systems (HNS), which holds a 55 per cent controlling stake in the India-registered Hughes Software Systems Ltd (HSS), announced today that it had sold its entire holdings to Flextronics International Asia Pacific Ltd . The all-cash deal was worth $ 226 million.

    The HSS stock reacted favorably to the development and closed the day at Rs 531.10 on the Bombay Stock Exchange, up from the previous closing of Rs 520. On the National Stock Exchange, the scrip ended the day at Rs 531.50, up from yesterday’s closing rate of Rs 519.

    Announcing the deal in Delhi at a press conference today, Flextronics’ US-based president (design, services), Ash Bhardwaj, said that the acquisition would add much value to the company’s activities, while adding that the management and the brand name of HSS would remain unchanged. Flextronics is a Singapore-based electronics manufacturing services (EMS) provider.

    However, Flextronics would have three nominees of it on the HSS board, while there would be three independent directors. HSS will have six nominees of it on the board of directors.

    In a notice put up on the Bombay Stock Exchange today, HSS stated it is in receipt of a letter dated 8 June from HNS Mauritius Holdings and HNS, the promoters of HSS, informing of they having executed share purchase agreement with Flextronics International Asia Pacific Ltd. HSS said it had agreed to sell its entire shareholding (representing 54.96 per cent of the company’s total issued and paid up equity share capital) to Flextronics at Rs 547 per equity share subject to fulfilment of certain conditions that include compliance with public offer requirements under market regulator Sebi’s diktat.

    Some of HSS’s bigger clients include big global telecom companies. HSS reported revenue of Rs 3,604 million and net income of Rs 769 million in its fiscal year ended 31 March, 2004. revenues grew approximately 63 per cent in fiscal 2004 and are projected to grow about 25 per cent in fiscal 2005.

    Flextronics hopes to close the approximately Rs 10.2 billion deal latest by October 2004, subject to regulatory approval, which would also include making an open offer to the public, having a shareholding in the company, at the same price at which it bought the 55 per cent shareholding from HNS.

    A representative of DSP-Merrill Lynch, which helped in structuring the deal, said on the sidelines of the press conference that it does not expect very many people to come forward and sell out the shares of HSS , held by them, during an open offer that has to be made by Flextronics.

    Hughes Software Systems , a Hughes Electronics Corporation subsidiary (controlled by Rupert Murdoch’s companies), is an end-to-end communication solutions provider for more than 200 customers worldwide, in the telecom infrastructure, communication service provider, and business process outsourcing sectors. A specialist in convergent network solutions, HSS offers products (licensable technologies) and strategic outsourcing services to its customers for mobile, fixed or IP networks. A global leader in protocol signaling solutions, HSS products and services help build comprehensive solutions for Voice over Packet and Broadband Wireless data. Its outsourcing services span the entire software lifecycle, from maintaining and enhancing legacy systems to product design, development, and testing services.

    Assessed at SEI-CMMI Level 5, HSS has been an ISO 9001 company since 1996. One of the Best Employers in India, (BT- Hewitt study), HSS has development centers at Gurgaon, and Bangalore , in India, and at Nuremberg in Germany.

    The company has sales and support operations in 10 international locations and has more than 2300 employees worldwide.

  • DirecTV unit helps Hughes post strong Q2 results

    LONDON: Hughes Network Systems (HNS), has reported an 8.1 per cent increase in the overall 2003 second quarter revenues amounting to $2.37 billion, compared to $2.192 billion for second quarter 2002. HNS, a division of Hughes Electronics, also reported second quarter net income of $21.6 million, compared to a net loss of $155.1 million reported for the same period in 2002.
    However, media reports indicate that the strong second quarter revenues have been boosted by the performance of its DirecTV unit. The DirecTV platform ended the three-month period with 11.56 million subscribers. The company said it netted 181,000 customers during the quarter.
    DirecTV generated revenues of $1.8 billion for the second quarter, an 16.2 per cent increase from 2002 second quarter revenues of $1.549 billion. The increase was attributed to strong subscriber growth as well as higher ARPU.
    DirecTV’s ARPU increased about $2.80 to $60.90 in the quarter, which was tied to a March price increase, increased customer purchases of local channels and additional fees from an increased number of customers with multiple set-top receivers.
    DirecTV’s second quarter operating profit jumped to $200.7 million, compared to an operating profit of $60.6 million for second quarter 2002.
    The strong results compelled Hughes and DirecTV to raise full-year 2003 guidance. DirecTV said it expects full-year revenues of about $7.5 billion, up from the previously forecasted $7.3 billion. DirecTV’s revised subscriber guidance has the service netting about 900,000 customers for 2003, up from previous guidance of 800,000 to 850,000.