SATS - Earnings call transcript Q3 2017

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Operator

Good morning. My name is Hope, and I will be your conference operator today. At this time, I would like to welcome everyone to the EchoStar Third Quarter 2017 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator President Relations, Vice your may conference. of Dutt, you Investor begin Deepak

Deepak Dutt

and General Welcome Johnson, Services; joined Executive day, call you, President EchoStar Rayner, good Thank Hope, Satellite Pradman CFO; everybody. Counsel. Officer Dugan, CEO; third President Kaul, Vice and of COO of and Mike Hughes; for quarter Manson, to Strategy XXXX. and by I’m Anders Dean today of our and Dave Chief the earnings our President

media to the the in a that As not on invite usual, on report. participate listen-only mode in call, you we your ask and the identify participants phones

not do also you respect. which allow We we ask that audio recording,

Let disclosure. me the over for Dean Safe Dean? now Harbor turn this to

Dean Manson

of and Thanks, that cause from forward-looking materially Deepak. results from All risks, we unknown our during be different statements factors results forward-looking those statements facts, historical involve actual historical statements make that known this statements. and than uncertainties, expressed by and other constitute to or could implied future results other any call,

we should those list being statements with XX-K Form during to to refer Annual our Report a risks, make cautionary please we call as they any factors on For our All statements SEC. wherever Form the XX-Q Report Quarterly the be on filed understood and and forward-looking make applicable of appear.

assume to should You risks Mike We in for any responsibility place not and the reliance any should call undue now the any forward-looking report Dugan. turn over consider statements. no carefully our statements. updating on forward-looking described I’ll

Mike Dugan

the everyone, us earnings and Thanks thank a you on morning, lot, joining Dean. call. Good for

of a XIX the on same at launch of the we short-term new We team’s EchoStar on and objectives. within I’m industry. successfully set time, with initiatives we XXXX the performance very long-term of one the launched pleased we actions recall, most satellites time service you the three As significant challenging of with balanced strategic as in introduced with entered us. ahead delivering our constraints

and completed the We a also partnerships with prepare Internet accelerate swap enable to to broadband and most player. the our – to today. us XXIV, known satellite consumer quarter. become EchoStar development concluded We DISH internally satellite and productive X, largest establish expansion global as busy just for asset the with getting development powerful JUPITER We which focused and future with more leaner, our under is another

was which was all satellite, XXI just and of on in successfully has XX October phase. EchoStar completed initial testing completed Our XXX its June launched launched August XX. in-orbit on Echo testing

satellites this to in year. later We expect placed be of service these both

Internet In The the events expand in addition, launched in these will at comments. we consumer service Colombia end management September. their on of team

expanding on Our offerings and in service focus footprint markets existing our expanding our our remains service improving and globally.

will on Pradman Anders have We mobility ambitions and go South our these discussed previously initiative. take our we call. into the and more as detail European American

market, We when also thought as situation the a right with enter and plan. elsewhere. new partners decide that are assured we be and continuing to look out critical, can Finding be at you it well other a is will opportunities

the question to us before to management get team we and over some Now this the to let me hand give answer. details

is off First take Johnson. over. Anders Anders,

Anders Johnson

Mobile and The teamwork. EchoStar Echo – the busiest EchoStar initially the at for Since EchoStar Europe, with Satellite in of with slot. Echo team successful which it, the in-orbit partner, across XX.XX-degree Mobile has launch been retired the of issue Echo European XXI successful working few connectivity and August, a throughout completion testing located for launch result this XXI, the Union EchoStar The all Services. the Mike. of contention commercial the S-band in by among satellite Echo quarters potential of is and III as We on of longtime Echo and quarter be excellent for of end-to-end preparation been the the will provide network Thanks, east integration times service XXI, terrestrial Walker. fourth Bentley distributed satellite year. Hughes anticipated last launched in services capacity its resolved the will XXIII have XXX orbital

also on orbital aboard collaborating Europe. of XXX, safety We of a and our currently launch transit C-band XXXX, EchoStar with X provides known which X.X to develop SES-XX, as SpaceX’s almost are of the delay also Falcon is Thales before Ku-band and in at commercial France for the launch final this replace a Satellite via Launch hopefully, the west will satellite vehicle. we the on Ku satellite, and XXX-degree position actually flight-proven Fixed services team year. is XXX, at the service hybrid the location October in AMC-XX end in EchoStar XX community capacity as year, occurred expected throughout public After that a orbital to the the XXX-degree has point Services speak. testing there completed in-orbit Echo of

of satellite the this to XX and Ku-band for transponders states We XX available coverage reach expanded are high-powered the service. XX have Caribbean into with excited Gulf Mexico with an x U.S. of megahertz and this

services fixed aggressively growth pursuing satellite has revenue opportunities. been Our team

over AMC-XX for business QX will terminate it I’ll SES. lease Upon to operating to of Echo of XXXX. deal New that with transfer Pradman. a continue customers includes will multi-transponder our XXX, dollar multimillion turn into now AMC-XX from we

Pradman Kaul

Thank you, Anders.

subscriber. competitive mentioned second a will including our than coverage traditional new megabits to JUPITER anticipate we ultrahigh-density capacity the served. increase and we a XXIV provide earnings will community second To speeds in It where be X. EchoStar a cost dramatic the SSL, an per contractor, XXX build The uniform call, enable I quarter we in per demand cellular, will to backhaul Americas Wi-Fi higher beam bit. All will coverage. aeronautical, rather optimized consumer, of our be enterprise, markets and to satellite blanket offer us which markets, recap, that in our As call at awarded satellite, very to the

other satellite the our United satellite HughesNet in We underserved the megabits speeds States and services that States continue of to market – at by large GenX of sorry, offering coast-to-coast with the existing about demand half thoughts by major are the remains households, broadband. XX wireless these in moving in describe being soft areas currently the XX unlimited. technologies. million we the second new where we to wireline With data they with the for believe United range over plan broadband, of unserved broadcast offering strong industry caps, per as half on some see including in the DSL. carriers covered to now U.S., the areas DSL, are LTE continue approach high-speed in And By data

fact, data caps have, XX around in or use All data typically a higher caps device month, for with gigabytes the per hotspot. of plans soft of these as lower wireless prices

flexibility, fewer subs, be is XX/X in Internet offer this segment a GenX value coast-to-coast use has churn there’s our opportunity than Consumer and retail and in satisfaction within with As million a and the very broadband to service very measured QX satellite by America significant for very Internet in the home X high material remains. compared countries price, With first been standard. attractive FCC plans. continues North plans meets service, nicely. It ubiquitous that competitive down we wireless the trending serving to data for those believe growth

last America XX% the that satellite And position to will This to in Echo future to broadband for sustain number customers about that second of this decline the subscribe the market increase Brazil. of our quarter QX and the going compared already and and engine comprises continue of in net a and increase XXX,XXX service powers you of in in and share a new over we This XX,XXX XX,XXX to growth. leader with be subs American and subs with to Americas, be our over forward. after We have North I’m Colombia an Mexico, delighted as small channels. capacity inform We our in retail, GenX other of months countries. represents of market in intend retail XIX September wholesale that medium-enterprise Central X,XXX,XXX operation. Canada, XX,XXX South year. we subscribers XX QX also of year of six ended and this and quarter wholesale the provides

started is we’ll currently to being XXXX. Telesat in revenue Colombia our and are augment and countries sales provided in and in across of Xplornet, Echo consumer for included quarter; and These payload Canada, capacity TXXV year, to in offering and on launched West additional launch on by scheduled in follow September in enable these the Eutelsat this capacity to service growth satellite The second system XX partner XIX QX. the the in continued service our StarGroup, returns. in will not launches markets. hosted Mexico in are mid-XXXX services in customer add partner which commenced our Mexico, certainly Our subscriber We the in but results, service

about unserved to these be Our underserved we prospect and and or by are build are markets cable target excited to of fiber, have new new America or the success The markets on the broadband limited continue seen strong in high-speed entering for that that those no and North HughesNet Americas viable millions many to GenX across of households a the and will Brazil. alternative service. have be the access we

aeronautical for completed we’ve Canada. in and build-out U.S. business. of and completed SES Since our on entire Thales also ground DO-XXX our last and call, have we infrastructure our modem, broadband Now the aeronautical to the the certification

Jupiter to August. largest aeronautical a this Airline combination system infrastructure airline band tradeshow with continues flying performance. country. very beams partner. this able the our We Jupiter satellites and Global be of Experience segments, In and expect and Global our SES Eagle them test utilize to customers prospective shortly. to Clients The aeronautical at Eagle and and conjunction we our switch travels aboard with Albatross past for system Entertainment, the demonstrated begin will using were planes Passenger in-flight system space Eagle service as seamlessly between Global Entertainment’s service impressed the will were the customers test

mounted also track Engineering final progressing Dubai Airshow demonstrating dual the aeronautical a Etihad at AXXX through stages Etihad Ku/Ka-band the next an and testing. antenna unit will on Our week. Yahsat be preproduction jointly of on is

the of Our their gateway total equipment and order traffic deployed both quarter $XXX be on to in operations of development tracking which each points for a satellite contracted domestically of satellites. over This million amount order, $XXX sites, original portal between enterprise business received would large access include abroad. bringing in high-speed order will for and support network also outstanding equipment for had network, This to gateway terms builds from OneWeb satellite globally. multiple million. orders, an the We OneWeb new handoff ground user

the quarter orders have this and from with backlog also $X.X worldwide. and QX Volkswagen, ConocoPhillips include production another from of ViaSat we the our of do We Global second an same XX% business Other also over total domestically increase call, we In Boeing quarter MEXSAT time Lovs, X the number. that over equipment. X a enterprise milestone shipping terminals Big crossed of Hindustan the from Public of We Safety, million the consumer important high-throughput Huawei, Texas year. by I were – internationally. of crossed commenced Department backlog, X.X billion and in Sonic, platform. Jupiter key milestone an mentioned At by terminals not shipping then October, of major last the IGT We million backlog and Thuraya ended in Petroleum, on

And So are and to the our in in well summarize, very as pleased QX. the longer-term. growth in with performance in we for see, short-term you really both can business, positioned I’m our

you to Dave, Echo XIX the Islands that in the services, utilizing over our I efforts wanted Rico communications, hand deploying it Hughes and in and inform Puerto has relief active Spaceway supporting and been to Virgin U.S. is I disaster very satellites. Before

delivering to demand. Spaceway expected additional megabits is entire upload megabits the X and of islands Our over new satellite area. service design us XX HughesNet capacity to the affected our speeds allowed download flexibility to GenX That move meet

of system the for agencies are additional have local to and move days to as partnership will support warehousing quickly region. and and the federal FEMA, established systems installed to meet dozens Customs with federal in logistics installed and Interior of the agencies. demand. Department Protection, We’ve Border efficiently various We commitment our systems such performance pleased and The with coming the be and in agencies

critical facilities. regional of establishing are humanitarian We support Examples efforts. camps for needs relief are with also in and and partnering various organizations medical relief communications infrastructure

it hand Dave. over me Let now to

Dave Rayner

Pradman. you, Thank

EchoStar to As agreement a interest closed substantially XX, in and certain exchange exchange certain February for held reminder, our the in that DISH’s the of equity our on interest HRG assets in companies on tracking businesses we stock. all technology other

businesses tracking the a our the As EchoStar results. and no result have operations retired. technologies in current the technology businesses, The we longer been financial presented of stock discontinued exchange, operate was EchoStar as

a to to third quarter, QX million satellite by million the on the those last the quarter the partially business, $XX.X quarter the spending this the as X% quarter million that XX% results programs the variances XXXX The $XXX being of CapEx, common change for consumer quarter offset XXXX. to shortly. define growth a Regarding was Echo million year, CapEx, EBITDA and third or the we EBITDA the year. third million, stock million last construction primarily the our being attributable of the of $XX $XX.X from this from for Net for compared revenue for third the third year. little $XXX over $XXX to for Capital EBITDA growth XXXX. income the was last increased same financial completed quarter partially A year. increased compared minus in were quarter million quarter XXIV Free year. the flow, more CPE $XXX compared million segment offset get spending the was on $XX results as were on earlier the primarily higher expenditures by I period was to in other cash bit increase reduced third for which

and transaction year. X% in QX Our early of driven the equipment last is of retail primarily of our expectation subscribers not in increase services broadband we and This quarter to CapEx increased year, North higher offset is million, wholesale indicated our partially by by international million also by and by million. lower Brazil. was revenue year to somewhat marketing last approximately gross margin, revenue with million and change subscribers construction to due and costs costs was certain until from the QX an business. from QX $XXX million the that enterprise being $XXX lower expenses service services sales this connected customers, primarily DISH and related over XXX in than the received XXXX year, offset QX be of in to compared million higher last an lower $XXX $X enterprise to revenue. and FSS revenue increase from EBITDA American EBITDA to compared America was a to was activity the last earlier primarily in to lease lower lower in estimate partially $XXX revenue in EchoStar reimbursement due to of revenue North due million increase for year. will consumer increased be ESS primarily next $XXX from the Hughes resulting $XX sales expected in

expired revenue have the impact DISH satellite, ESS lease QX. $X annualized we the XII indicated, of This million has the will not on previously an on have As which at going renewed forward. Echo approximately end

million other the In increased positive lease EBITDA have by we $XX corporate $XX to million expenses equity year, addition, year. the approximately to from million on securities, EBITDA and trading of gains certain of primarily operating over of million. of $X and a a million in quarter expect in decrease third $X due which of in in segment G&A will last in dividends AMC-XX received annualized $XX terminate later investments this the this QX year, QX strategic impact certain

Let me Mike. over now back it turn to

Mike Dugan

and Dave, thank you, your you, for update. Pradman Anders and Thank

to participant we will believe performance, innovative We see continue and through these transactions. a offerings. from inevitable, our that be driven industry transformation to As plans. this technology quarter’s and you go consolidation on The in that satellite desirable and can key we by is continues we believe service execute a

teamwork for XXXX strategy, M&A our successful With while beyond. we execution opportunities believe I We growth. our successful organic the continued investment, very great we set of have a continue explore stage and continue to and

Let me to back to session. now over start operator turn the it our question-and-answer

Operator

from comes question Andrew line first Your DeGasperi Instructions] with [Operator the of Macquarie.

Andrew DeGasperi

your it and then maybe was secondly, quantify, good AMC-XX we that? Q the curious reason maybe the think add But think just on on VIII first with to And know could morning. little quarter? there’s was I mentioned there lot subs end, in within Pradman, a retail you for I this maybe what you ESS, by know, and Thanks, was quarter weakness. that getting international to what pieces comment the out know and could SES-XX improving EBITDA. obviously is parameters? Echo of – in specifically coming then those we maybe Can SES-XX moving I taken a expected Thanks. comments, if

Pradman Kaul

second the want you first? question to Anders, take

Anders Johnson

it, Ku-band C-band at the opinion, payload geographic will XXX the its of SES we than the you to as not Sure. better capacity we hybrid the it only orbital use in it’s XXX because also satellite, is higher where for a capacity our satellite the lease payload SES-XX, to we SES payload currently lifetime refer power – from control really Echo their location. – the will referred for but a represents as greater extended have and of The SES, numerically and or reach.

have number location. presold satellite at We placed capacity, to whom service go arrives have in customers the once will is which on of we the a and orbital it

I to to that’s expect time responsive valid performance your in in I to think relative a the increased expectation it question. current relative to XXXX hope is XXXX. revenues XXXX frame,

Andrew DeGasperi

Yes, thanks.

Pradman Kaul

Okay.

I meant business. the see strongly, was very been growth that been international total to business showed doing consumer the to our the international international remark But think be we growing that has some good revenues the part On slight and – side, has of in continue weakness.

Andrew DeGasperi

gross you net third obviously the add had quarter. good And really Understood. in numbers

you. tactics? with operators’ Are – or peers LTE wireless change to plans as business, the to additive of impacting doesn’t different it their LTE as anything you highlighted have but of plans case Some potentially your be unlimited seem doing

Pradman Kaul

the because impact mentioned not are they’re involved – in remarks the growth they’re going is that are I of into. operating markets at the of the we which see markets both as wireless and the don’t of my limited we the LTE I the fact XG, frequency in No. that and that

We of haven’t see the XG – and continue don’t after to if impact. and LTE markets the go much – networks. an underserved the expansion where we seen of see an we the unserved And

Andrew DeGasperi

came taken Dave, out better would million me we driving acquisition in question even little I gain thought for bit. the the $XX securities, cost And in margins Anything gain. have the have that? is it. a probably took if EBITDA Got subscriber last would that down much

Dave Rayner

mean, There’s component a most does and EBITDA it the sales get get really hard where growth, of a have the good and on and of very I marketing of managing overall, letting negative we’re and the done that of control. on costs, seeing nothing certainly, magical out But marketing sales not got I overcoming have. have margin Yes. in are the mean, margins bunch impact, costs that growth. that business. team work. very, real. his a strong the drag than other job that’s Pradman That’s the consumer results is and things drag will there you’ve a really And – I

Andrew DeGasperi

you. thank Great,

Operator

Bazinet question Jason from Citi. line the Your comes with next of

Jason Bazinet

I Thanks. just have some housekeeping questions.

of normal Or think because Do us think, as think million of reimbursements come to sort things it’ll as invisible see sort of do enough we’ll I other in? be backfill sort $XX of stuff modeling your you of sort So below going on CapEx we’re this think reimbursement there’s sort you where year. I year CapEx XXX, up timing that? moved on the the number next a Echo about

Pradman Kaul

No.

because hopefully, sort coming mean, it, the satellite the amount if $XX is, of Echo up initiatives, just be overall Wrapping obviously as year you next that we – first Echo That the we think next We’ve had referenced in But going CapEx XIX year. back see we major And and really months. three should down. really activity million, slides the XXIV of the to fourth you to quarter. got activity expect four the last spend I launches don’t have same of satellite to can lower partly fourth, forward. drops XX in go level year. down. last you first quarter I the into expect see

Jason Bazinet

Is on getting million is savings, is headwind Okay. the an headwind, and to a And revenue an XII that not expense you the EBITDA Echo that then but $XX to $X alluded way sort AMC that the interpret that in million. comments renewed, both right your of just comment?

Dave Rayner

very bottom XII that percentage a of have – line. the Echo will a obviously, revenue falls Yes. And the impact. The high to

Jason Bazinet

Yes.

sort high-teens Okay, space been consumer all when down question – right. And pretty I the yet then the sort households. What million I of go estimate. broader measure in of I is, adds, you of guys there’s households my and opportunity adds or put up But this have not-served in don’t about line consistent imply net net underserved mean, is that broadband our it sort guys you sort there. the the with was the quarter-to-quarter out of XX of

So missing households? to partners? of what the piece? consumer the it more Or better identification factor out if field has or What’s in we’ve product there this presumably or the demand? marketing be Is great gating and got is there these that more –

Pradman Kaul

Yes.

aiming challenges, the of every that net the a that we subscribers at. the obviously, have, of large given subs number think base numbers acquiring takes of are the the churn the I there we that significant subs are are quarter we away with

present according So which down, plans. are sub churn we’ll it’s above And net laid as numbers, well beyond with we – we our very consistent we our and in rate the that very improvement it’s plans the with, drive are pleased to out. and operating we’re some – doing see we hopefully, the have what

Jason Bazinet

all Okay, right.

Mike Dugan

Yes.

on. so won’t thing could even those with in long gotta and of to adds consumer get of term, learned adds, net is, we gross other the the us. the We lessons we We’ve from but hard business number we sure businesses stick other some make to some The subs right consumers. increase run point the and

right focused right sub now. very the we’re So on

Jason Bazinet

Understood.

Okay, thank you much. very

Operator

Fargo. Your next question comes from Spinola Wells the Andrew line with of

Andrew Spinola

disasters net I material add activity, on from your you wondering impact net was natural quarter gross if activity. the add the any Thanks. in felt

Pradman Kaul

are We presenting any had a little we I the here. subs. of that light of bit. the Just numbers few think are in Nothing don’t numbers significant significant. a

Andrew Spinola

you the has has you Do Understood. typically up, this of picked like seems expect a seasonally – – in QX. in again some of And improvement been sort said strong just I sequential sort call, your last QX marketing you and quarter. you general think observation. on It

do you again expect an So continue to QX? in uptick

Pradman Kaul

Well, is generally, if you of followed QX. subs, quarter, look our QX seasonality at the best the by

think So years. we follow to the I we’ll few statistics in continue have past demonstrated seasonality that the

Andrew Spinola

Understood. trying just And to understand where the coming. strength is

things ask of the country to that I JUPITER of the in X Western One wanted of hole just any big about where have had is, didn’t sort the coverage. half you

If area? capacity you’ve are that are had to coming Is anything adds just getting subs as were places traditionally? they disproportionately at where your many net you from there you from today, Or notable? look

Pradman Kaul

compared and there’s notable. to clearly East I from anything hole think the there West subs number a that coming Coast small mentioned The is No, you’d of a from the don’t perspective, – got population Coast.

that the are of it’s acquiring. not distribution So our impacting subs we

Andrew Spinola

wanted the I that that and big guess, your to I and saw a capacity if benefits I’m have in kicked international QX might sustainable did had in, wondering just in there going anything forward. be will ask, relative some renewal Intelsat they on Andrew’s you. business domestic was with strong in Hughes the question, you side up on margin was to your was quarter. EBITDA And – wondering I in noted if quite following

Pradman Kaul

so. No, I don’t think

occurring there’s there. that the think – nothing everything extraordinary in – I

Andrew Spinola

it. Got

Pradman Kaul

few you’re they just We deal Intelsat Ku-band transponders that is our Intelsat. a lease the where mentioning think existing transponders. renew for I to had from customers

Andrew Spinola

it. Got

Pradman Kaul

It anything didn’t our business. with have do to consumer

Andrew Spinola

looking business, the that up, like a – to improvement sounds Yes. your whole had is quarter, which add why the I and segment you just as Hughes material with understand guess in the gross Pradman, whole trying of for just I’m segment. occurred margin pretty to kind it consumer follow at the ramp

of from of kind So Hughes that the assuming it’s legacy some consumer business, probably broadband. not I’m your coming

Pradman Kaul

Yes, no.

to the our by business the I margins. contributor far think is consumer largest

Andrew Spinola

Understood.

you’re you about might you where mention you’ve as is. the want of beams but talked about become don’t I of other – be the those think aero maybe, next how talked other in and and like the working and demand know going that, might what you to about your JUPITER a the as broadband the satellite, designing for existing some and or you sort could us You how some build-out in think percentages satellite, wondering, how to adding on than opportunity completed anything about, X, you satellites much there, should of forward? I’m consumer revenue level, explain the they focus might to those how if they we U.S.? applications So become to big of also

Pradman Kaul

residential be that to major that of you think element are business. I on have area by our geographic the the we far depends answer In States, Well, and dealing to – basic question the consumers, will that the with. the United we’re on focused

what regions, markets these characteristics like into changes and the And enterprises that As the portion. show. to cellular they market like Wi-Fi, are backhaul, and the are the applications start of go things bigger we very becoming the like similar community bigger as consumer international semi-enterprise

it characteristics. emerging newly more and markets, – the they segment, the and and international the to break even markets in then you So have advanced different

So no applications. region there’s simple different serve one answer, we’ll four on the bottom the or line these three that, depending but major is

Andrew Spinola

clarification, Anders. one last Got it. just And

XXX That’s You said comment versus for Echo correct? segment, entire the – for AMC-XX. increase not expect revenue that the XXXX. you to Echo made a ESS That’s in versus XXXX contribution just well, you

Anders Johnson

that Correct. I addressing was specifically.

Andrew Spinola

Got it. Thank you.

Operator

question comes of the Thorne with next Giles from Your line Jefferies.

Giles Thorne

Thank you. I have three questions, please.

from consumer touched on it competition around The in infrastructure terrestrial broadband, infrastructure other competition was was back it’s first to earlier. obviously question and coming satellites, And too.

platform. in satellite where broadband position and unique satellite, a the you’re I’m but via competing investor a also about OneWeb. at in in potentially same effectively time, And consumer leading talking supplier a obviously incumbent You’re a

there to Back talk just devil’s on moment, a us direct competitor? in, be still of was could in from equity when and OneWeb. the yourself you XXXX, actually was people play logic advocate all and question in big Airbus. could So contribution that the for participated were Second this first Qualcomm was by kind like through enabling a what you of round rumors assets the that done

and a now in in actually you’ll million further than $XXX that announced is equity any cash and rather $XXX total. You’ve that OneWeb, million receiving mind confirming be contract, Would whether there’s that in to any you Brazil my in operational the orbit linked – in then pause a fact, of question on there in workflow. and be America I And the lastly, and shall like third I’ll milestones moment. this – I’ll

Pradman Kaul

your remember then. question first by won’t We

Giles Thorne

tell I’ll right. you. All

do you remember. think I

you to I repeat repeat the So me won’t question? want it. first Do

Pradman Kaul

no, No, I ahead. remember. no, go

Giles Thorne

Okay, very good.

Pradman Kaul

first on potential like the our there’s And we areas call The clearly And where allow have X, to synergy. don’t and question to very much the focus X the between us geo high-density subscribers. system OneWeb I X us Jupiter system. think areas. of serve and concentration to systems you the OneWeb allow synergy of characteristics So that effectively like is significant

in of account, efficient. the And of the two basically I provide hopefully, you density of the So into at everyone. that’s every to we’re when – the subs. don’t where to if areas relatively the networking And vision. will that strategies, we’ll to with look high designing serve subs. to have the OneWeb we’ll and very where OneWeb, we the – the to address, think there’s very, work geo you be – subs the satellites And technologies, markets to combination access look be a fine. at network founders subscriber the high-throughput able takes them high the of use region our density use geo – plan And design Internet of address in systems, the remote expect we the X the design that helping it’ll and And expect since world, we density to we more

Your with second is question there to in-kind cash continue that the relationship, on the payments. All are both no and we in expect OneWeb. contractual in operating directions, transactions in manner

Giles Thorne

announced around this OneWeb you type investment connected in remember certainly, any did And car, Intelsat just or and the have original I release, the this, right, on similar of but was capacity distribution? aviation into, around you’ve exclusivity the exclusivity OneWeb, if

Pradman Kaul

sure, confidential. the at are we appropriate relationships. to them. relationships I’m time, I don’t I we’ll, have think stage, At the freedom contractual this explain But announce think those those

Giles Thorne

Understood.

an my Okay. to in it you like and there. the the price market, reason prices for fiber. volume? high it – interesting over It’d Is look that some And than point does to an higher Brazil. third be hear down hear that looks even was approach. price on specifically it’d And will be then strategy positioning the pricing early-adopter service Or is drive service setting take-up. It finally, color for to like, interesting this come question are extremely for well,

Pradman Kaul

Very simple. underserved. and Unserved

We’re in markets we’re not fiber competing that against serving. the

Giles Thorne

– higher BRL to to be just much well, fiber. question be stands Well, so an get about more not you’re XXX Brazil the the my points just across competition, if priced BRL XXX, to I honest, even can’t to it It’s XXX quite you’re in wasn’t threshold. fiber. – affordability. Brazilian on saying fact a that just looks average BRL about XXX, affordability, it’s it’s that infrastructure – If lot. know, suppose. against than I to to fiber needs don’t was out much BRL But is – needs at not affordability really I price about – The

Pradman Kaul

Yes.

we are in comfortable U.S., point. nicely. we’re very market the the the – I that growing think our at in stage our that we this at of in needs price just changed five haven’t years. like this And price last Brazil addressing business we’re And

point and Brazil, Brazilian getting we’ll do in think this all And at were sub, continue picked the future. the in market I maintained and our the we think in to For we have I price well we subs want we’ve ARPU. the stage,

Giles Thorne

Thank you much. very

Operator

question from Analytics. Your Chris the Quilty Okay. line with Quilty Instructions] comes next of [Operator

Chris Quilty

Thanks.

the point point you’re gross follow-up international? terms future I on fell adds and on a or And in very that domestic the first missed part that Brazil. Just did perhaps? your us commentary, – of you they either of something give give how a Dave, going granularity in breakdown last is versus of but net to

Dave Rayner

breaking as say At point think – detail. business this mass, right those that think the consider out we let’s of gets pleased start American South to breaking I out But we’ve to in success our I Brazil, as Pradman time, in with just critical now, not results. non-U.S. as been a said, the Brazil. very will we’re ready business of or level

Chris Quilty

in you press launched Okay. And service that recall release did ever – saying do Colombia? I a

Dave Rayner

You very did. the September. At of end

Chris Quilty

Hughes did from in anything reflect that The Okay. contract? backlog the quarter, OneWeb the

Dave Rayner

Yes.

Chris Quilty

not thing? piece a whole it, just the Obviously, of

Pradman Kaul

No. The whole thing.

Chris Quilty

Okay.

Dave Rayner

Well, the incremental backlog. $XXX incremental million would have been

Chris Quilty

Got year? are you the you. And going to that next do all in

Pradman Kaul

the is two years. delivery The No. over next primarily

XXXX – and be most fulfilled be significant the will will year will of Next but XXXX. in continue contract a jump

Chris Quilty

on just And you. development. a OneWeb the Got follow-up

how for said or hardware, Hughes Is are completed? you’ve portfolio? that new production new in moving existing able to the building I actually development think Or ground you you’re technology revenues this out already building the you leverage infrastructure. towards much

Pradman Kaul

system we’ve years technology, and developing new years. been two ground two this almost almost now, for It’s

so the year. into the parts, this of we’ll year. full et we’ll get deliveries QX around the begin production middle cetera, next buying And of activities, in And

Chris Quilty

you. on, or of contract? any portion move slow down much architecture independently? Got potentially pretty – satellite antenna dependent the your of pieces either you other the are along you there And you Or that could are that can specs could

Pradman Kaul

No.

control. We are user the anything This This is doing the outside terminal. it ground our be whole doing gateway should – complete side. and the we’re the is gateways, and not

Chris Quilty

The And final enterprise you I of Great. are you was up run to in mentioned the just mean, numbers, are or the you on quarter know I the portion it I as But year-to-date? that either question. try business, year-over-year basis, holistically, international – down. enterprise through a guys

Pradman Kaul

to our don’t numbers. break don’t out in our enterprise international international domestic. we break think I think, Dave, those I comment, but may out you – we and want Chris, business

Dave Rayner

don’t. I No,

Mike Dugan

the what we mean, what got enterprise. I you is is program, OneWeb you include remember, got in Yes. we discussed, part to just Chris, as of enterprise,

That’s Xplornet Canada You’ve not part enterprise. got into is the of consumer services part business. the of

up So versus enterprise QX on QX frankly, look well that as when as the North year-over-year business year-to-date, year-over-year. at we is American a basis

Chris Quilty

good very color Okay. much. you a then. That’s Thank

Operator

from Raymond the comes James. line with of Prentiss Ric question next Your

Ric Prentiss

was break guys. little of questions bit Couple the it’s talked to the Appreciate morning, have late on questions, while taking could. three about, companies Good Thanks. XX-Q, in if net like One, out was a of it new international channel. the say adds retail subscriber in additions international. a Or did in in there Was that that Chris thing? decrease don’t – versus the type It you actually had I report. to get loss domestic a just the decrease adds?

Dave Rayner

adds. loss net was It a definitely not of

Pradman Kaul

If it says probably it’s that, correct. not

Ric Prentiss

it again. sorry. I’m Say

Pradman Kaul

Our we a retail had think that. – I customers international I grew we reduction went segment. market don’t that in think,

Ric Prentiss

the that satellite obligations then mentioned to the up billion. to as $X it X? projects, in the able kind not break And it of your I all also $XXX your what in well last been Because like the new thought quarter. partially Okay. you the might Q in projects out the for JUPITER went that XX-Q, to Q, obligations? million have Was from Were just the –

Pradman Kaul

Yes. I obligations – QX, are We higher. call, quarter on contract mean, the and it certainly, that we announced signed QX. contract that in signed the last the in and was

Ric Prentiss

Okay.

going that think, to there. OneWeb continue have we’re Street. in to then to back I just Obviously, question. consigned was questions, And So the OneWeb The

it their aviation, earnings OneWeb on there. cell shows last And it SoftBank, week interesting in on on their presentation slides included it some shows sites. in it for

just SoftBank there is as maybe is with think areas, maybe to services OneWeb trying sense? and make far thinking a – vision SoftBank in particular not just Sprint, where as has rural that in So different

Pradman Kaul

made serve couldn’t that. mean comment incorporate can I networks. how it that doesn’t would other with our hate that But was that to you speak for any things market. do SoftBank, The technically but the we in I would obviously system

Ric Prentiss

Sure.

balance And common obviously, that be investment one Class it Any part became, in the asset B. from the it that was of valuation big that Will reported me, final the game going preferred a I reflected? that how line? forward? is and Okay. Or from IPO moving of gets in now EBITDA represented guess, changes into an somewhere sheet else the still on the

Dave Rayner

valuation through forward that The will of going run asset the P&L.

Ric Prentiss

P&L. the through So

guys. Okay, great. Thanks,

Operator

next the question with of from is Your Macquarie. DeGasperi line Andrew

Andrew DeGasperi

be Xplornet into about you or revenue guess Hughes. I Hey, One quantify The quick just was we terms capacity wondering, tell and much sorry. of us or StarGroup can I thinking in should sales, how contribution question. directionally? flows that

Pradman Kaul

do No. that. I can don’t we think

Dave Rayner

wouldn’t the customer confidential obviously contract us those were our associated wanted specifics mean, terms, we disclose and I that any contract, to. Yes. unless with

Andrew DeGasperi

Got it.

the what it sorry, VSAT it million high vertical, that a attributed does all was seems let $X.X quarter. if third can to very us know number what the customer And like you because sales, in

Dave Rayner

Can sorry. you Andrew? say that again, I’m

Andrew DeGasperi

think The terminal $X.X it VSAT million sales? I mentioned was earlier.

Dave Rayner

a is That indicated. sale. Pradman that cumulative number the was That

Andrew DeGasperi

sale. Cumulative

Pradman Kaul

of the enterprise, And satellite, as the Jupiter we that VSATs had that consumer, using to between combination $X whole international. By were but terminal the million of milestone date. includes million shipped shipped platform, the on that the We That’s the platform. a the $X.X the the million the platform. domestic, distinguishing but platform. of – new ground This the all don’t $X out we Jupiter hit – mean we

Andrew DeGasperi

Understood. Thank you.

Pradman Kaul

terminal the By the the platform, platform. the don’t but satellite, mean – we ground but

Andrew DeGasperi

thanks. Right. Understood,

Operator

line Spinola Fargo. is Andrew next Your the Wells of with question from

Andrew Spinola

you referenced sense requirements. the Can could on Thanks. and in update Thanks. for failing Any that Any meet Echo potentially to changed how get S-band And Anything there? Ka-band big there’s on possible an also, new thoughts? be? the penalty we XXIII? Q a that

Mike Dugan

Anders?

Anders Johnson

We rights junior relating S frequency by Well, those the Anatel, the Yes. relating Ka-band and itself development very in Brazil’s completely situation. of BSS to committed resolve those very but our I mean, in-service remain we peripheral with recent which the our are loss request discussions bands the potential complicated priority to requested bands Anatel rights, the year with unfortunate, a of our to to and was Echo the challenging with solidified rights to this to which rights core time optimistic. somewhat Latin now give interest, American the but the ITU. at coordination The a and those market them in determination milestones our situation the at some slot. long-term continuing, high-power presented are had the that is to development challenges generally, additional were fully was We earlier given remain of relatively denied. Ku the partners XXIII is in us BSS of relative those some

Andrew Spinola

to or over call would for questions back no are like any remarks. There this I to now Anders. time. the management closing you, turn Thank at further further

Deepak Dutt

good I the except any, call. Operator, don’t in terminate to everybody day. may for say have joining we and you thank believe to you today,

Operator

This Thank you. today’s does conference conclude call.

disconnect. now may You

EchoStar (SATS) 8 Nov 172017 Q3 Earnings call transcript