EchoStar's Q4 2024: Diverging Views on Wireless Growth, Subscriber Strategies, and Spectrum Monetization

These are the key contradictions discussed in EchoStar's latest 2024Q4 earnings call, specifically including: Wireless ARPU Growth Strategies, Wholesale Customer Opportunities, Wireless Subscriber Growth Expectations, and Spectrum Monetization Strategy:



Financial Performance and Improvement:
- EchoStar reported revenue of approximately $4 billion in Q4 2024, down 5% year-over-year, and OIBDA of $397 million, an increase of $9 million year-over-year adjusted for the 2023 noncash asset impairment charge.
- The improvement in OIBDA was driven by more efficient Boost Mobile marketing and a slight decline in Pay-TV OIBDA due to fewer subscribers.

Subscribers and Market Growth:
- Boost Mobile completed 2024 with approximately 7 million wireless subscribers, an increase of 90,000 net subscribers in Q4.
- The growth was supported by improved churn reduction, higher-quality customer acquisition, and increased ARPU, despite the impact of the Affordable Connectivity Program (ACP).

Technological and Network Expansion:
- EchoStar achieved 80% FCC coverage commitments by extending 5G broadband coverage to more than 268 million Americans by the end of 2024.
- The expansion was supported by investments in $1.1 billion for network deployment in 2024 and a disciplined approach to CapEx management.

Satellite and Connectivity Services:
- HughesNet, the consumer brand, closed 2024 with approximately 880,000 subscribers, demonstrating customer acquisition and retention strategies.
- The growth was driven by the introduction of high-value customer plans, leveraging the JUPITER 3 satellite, which delivers over 500 gigabits per second of broadband capacity.