SATS - Earnings call transcript Q4 2017

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Operator

Good day, ladies and gentlemen and welcome to the EcoStar Fourth Quarter 2017 Earnings Conference Call. At time, all participants are in a listen-only mode. [Operator Instructions] Later we will conduct a question-and-answer session and instruction will follow at that time.

As a reminder, today's conference is being recorded. I would now like to introduce your host for today's conference Mr. of President Vice Dutt, Investor Relations. Deepak go please ahead. Sir,

Deepak Dutt

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

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

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

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

Dean Manson

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

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

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

Michael Dugan

busy operationally. successful year to Dean. had very and earnings and XXXX, Harbor, usual. very call we you, as Good morning, Thank job our and everyone. Welcome on Good Safe year the a productive financially for

our events We the let recap Before me I year. XIX/Jupiter service the launched most consumer team, last significant management GenX last EchoStar on it X to turn year. HughesNet over

XXX and XXIII XXI, Echo successfully. launched also We

consumer used satellite X contracted a our that Jupiter we XIX SSL density up Jupiter Echo XXIV the satellite to on service. follow ultrahigh build We for X Echo as also with to or

also to and Colombia of while, of Rayner items, more We continuing Anders in Johnson Kaul, Dave launched financial Pradman provide these course, them the rest much the and businesses. follow on will grow will service up with consumer review. our colors

turn me Anders. over Let to it

Anders Johnson

morning. Mike. Good Thanks,

services on XXI subsidiaries, satellite Union EchoStar commercial our December launched European EchoStar XXXX. European in S-band Mobile throughout the mobile Our

As Safety regulatory answerable regulators continues initially been we've and calls, whom noted on we've to met throughout communications regular apprised in service in a now milestones. Thales and with previous develop Mobile them EchoStar as kept licenses The Mobile Public team to of France communications work next-generation we've our are Europe. have all European EchoStar to with hopefully,

after November. year payload for [indiscernible] of late customers way Ku-band EchoStar XX-year replaces in C-band excited Union. were explore the throughout the European Additionally, October reliable IP-based XXX the EchoStar lease XXXX. a and the services leased we on Ku the data, of from European states XXX with titles providing was to satellite-based partners, XXX, AMC-XX XX-member the also with the thereafter. operating the machine-to-machine MSS testing on are agreement EchoStar XXX that upon renew [indiscernible] Current option payloads in us service voice, on end for of SES and transition and to commercial XX team Center capacity entered terminated known SES, were The continues transferred the be in-orbit successful the IoT EchoStar satellite satellite, as network and service to initial that Florida. SES-XX, about other completed for Space hybrid launched at will successfully previously with with offers opportunities term Kennedy connectivity potential

States XX The is powered of EchoStar and the IX high XXX, into joins providing expanded this We a comprehensive United reach account Gulf capital EchoStar Caribbean. of Ku Mexico the that and coverage the for commercial needs. will capacity, the of state

Satellite has the over to I'll turn good capacity. new Pradman. it team now Our on Services filling progress made Fixed

Pradman Kaul

Thank Anders. you,

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

in We of coverage XXXX Service satellite XX phase West are as and Telesat expected XXXX. anticipate X standpoint. in review Jupiter our addition complement and Eutelsat launch and satellites hosted will satellite, X the in as currently in the milestone to on will and completed first be payload is from capacity the of a design to X well the XXV Jupiter the half that design preliminary

Now to strong North In saw QX, our we increased service for demand business. in America. the consumer and

see and of satisfaction continued support churn on as satellite, Jupiter subscribers lower on with with new our all customer fourth the to churns business. American approximately our retail result, X are HughesNet of now high Jupiter and in to North down. go consumer currently, consecutive continue a quarter We GenX and QX American half was levels GenX. GenX plans the North We X

other in countries very XX and later is satellite We're September. XXV South also Our up well, launched working been the setting Telesat Eutelsat on actively and West year. Brazilian now businesses this business launched has consumer when service we using Colombia American in growing in Central consumer

XX,XXX retail, XX, base December and year approximately adds to as the was quarter XX, as subs small in million in wholesale QX compared quarter. XXXX subscriber approximately of enterprise compared net of X.X third adds subscribers approximately and subscribers of of X,XXX,XXX same total XXXX. and net medium had Our to We XXXX in XX,XXX XX,XXX last the December

a growth technologies, in consistent that SD-WAN suite with services Enterprise the year market revenue we all a American sectors. Varco. perspective, market our Our believe our to continue year we managed an North and services, to pipeline for business also energy strong In of National orders from the had contract pipeline, advance ended lead Oilwell year in in now and We the extensions enterprises. Connect excellent concluded with at sector distributed and developing SD-WAN Shell

able Islands, ground emergency Franchise through dealers, and the communications Rico operators install Virgin devastation After Maria Yum provision Our in of we and in our Puerto station service and from to the casual quick or were from continued the to business services teams Hurricane and Denny's bookings market also primarily Brands. ConocoPhillips, addresses and we're FEMA the saw Exxon, support able in consumers gas impacted links was dining with installation restaurant of International areas. enhance our enterprise supply households communications Spain to operators our Jupiter Spain. technology X,XXX initially Jupiter power selected segment system technology ground for In to key by restore Enterprise and small Hughes globally. businesses services thousand to business, several over to Eurona Wireless satellites continues customers broadband to the and SMEs and to in

technology Philippines, Bolivia. in In continues Thailand, power operators broadband satellites for to Indonesia and addition, Jupiter ground

to an its Brazil's from order multinational of renewal giant, Bank, a power service of We financial National continue services and share grow order of financial Punjab bank banking one a market the Indian global subsidiary companies. also in one India's from utilities and major a Executive from with largest ATM our and received two-year branch

for Our in X from American of $X.X backlog XX, million services countries. also XIX, or XX, was capacity backlog and higher enterprise $XXX X% Canada, Central December as billion provides at Jupiter approximately South December the customers Echo than Colombia other Mexico, XXXX. and

provided will satellite Xplornet Canada, to the of services capacity are some X our certainly is markets. by West as in payload in TXXV the scheduled Central Mexico hosted revenue in offers Jupiter South and Jupiter Telesat are services StarGroup. partners subscriber replace to included accounts our Our the sales, to enable and Eutelsat which returns. growth add These the XX and partner middle X in they're on American but augment capacity The XXXX continued and not currently in

as Global now, awarded solution. as support significant existing Meanwhile, the Entertainment Jupiter With last a Aero aeronautical contract is our endorsement expansion this we strength up from adopting also the airline Eagle for the economic deployed one our major band Eagle, Aero strong and feel is Eagle of new Russia platform, we business, terminals to and to Global customer. getting Jupiter Regarding in since and Global of a customers. significant Aero both Palace of well base the based be European bandwidth support technical in Europe our were XXX call, and

to that projects. certification the certification way airline by the now of mentioned antenna last antenna side, for of process, by going Airshow. band the dual FAA On antennae supplementary DO-XXX, time Dubai the type our environmental successful paving mid-year, FAA-mandated specific at for we the STC The and antenna expect is demonstration into the we complete

with recently antenna, requirements integration supported also Jupiter addresses and our ThinKom's satellite, X because Jupiter successful electronically We antenna, conjunction of steerable band Aero is it profile and dual this test single in Ka-band Jupiter low and system or system. our with our ThinKom, and a band Thales applications different in

solutions. are these So complementary

$XXX antenna aeronautical system received the gateway bringing the high-speed deployed. on expand of support mentioned over include another access from where to order OneWeb total we call that million between and network, system would of development their system builds yet as points how the be that equipment and for scope our contracted as multiple our work handoff gateway large can operations user order, over traffic sites, Jupiter the for million. amount for tracking which Jupiter to order to This satellites. will key having ground $XXX original satellite the each of and satellites So a reach We well QX

in in We half throughout continue gateway be world, in will to locations we this the the will work commence second on production of the equipment many shipments year. development deployed of the and production

approximately Hughes be want I to investors, quarter you something of our that's meaningful should that profitability. and was as in EBITDA highlight fourth margin XXXX the to XX%. Finally,

combined and from continue cost management. consumer and doing high so achieving We in expense consistently continued EBITDA expect proven are growth to high-margin our primarily margins business, with

the through operators our to our relationships current Jupiter We capacity XXXX penetration and the Jupiter market in to remains leading our Thales. continue X. our South addition as and business. American leaving want our grow. market a thus XXIV We business being let From OneWeb is less a through are and expand X satellite, in X Eagle, and which To from want grow and me standpoint, X Telesat satellites. XX and to access aero XX want edge our leader grow market pleased maintain close And with on than want technology want We market leadership. presence headroom We our to leader grow of QX. management. Jupiter Global Eutelsat lot the will with SME households million, continue provide with growth over service of beyond. SES consumer LEO-based we in we enhance a grow successful to built, relationship subscriber continue consumer the at their in our I'm and to and the development consumer using to to in performance current West X our our Central comments We North XX infrastructure system beyond million in capacity currently Internet to EchoStar large expand worldwide. is sales And capacity It to as new around want and satellite a summarize, also in that presence goals to So ground few provider they world. Jupiter being truly with America market-leading business, strengthen ground to profitability and continue

share any competitors. the our sales market. the market battle ads have consumer to than market gross win access continue we signing and by and satellite up We And the leading broadband quarter-after-quarter share enterprise more of

high. addition, keep so North in driving American churn consumer we subs our that are down at our net business In market-leading

to a We also make in all premier I'm million us cumulatively exciting market. profitability believe elements company shipped X.X these very of the Hughes. for looking successful and I future and our a this combination VSAT worldwide. forward terminals

it Dave. now to over hand me Let

David Rayner

Pradman. you, Thank

summary by $XXXX and same was of Consolidated segment, was XXXX investments results. $XXX growth sales of a quick growth driven over last revenue EBITDA growth, fourth First, the and a EchoStar's revenue year, in of offset driven ESS. offset by at by million consolidated for Hughes' in in the by growth period quarter X% in XX%, partially revenue marketing decline corporate costs the gains Hughes. our other on QX and partially million, of

attributable of The was increases compared $XXX XXXX, in Net $XXX increase December. in this $XX primary the driver For and the of to the quarter X%, full-year billion same quarter new income is respectively. million, EchoStar passed last tax common the revenue year. large X% EBITDA million in to million $X.X was law and was stock

tax remeasurement of tax result provision liabilities. we of As XXXX of beyond, $XXX reported in benefit a of the one-time from lowering a million in tax federal our XX% XXXX deferred net and

increased consumer business. XXXX to CapEx, costs with for Going expected our satellite. in XXIV increased was the we the where see interest. satellites result last here we in spend million, incurring the total cash rate X to increase somewhat effective as forward, which $XXX CapEx income rental expect approximately growth, XXXX, full lower the EBITDA due CapEx. and offset depreciation cash the and compared in EBITDA in to capitalized more completion to normalize consistent we The million tax XXXX. increases for we $XXX year million define Net in fourth consumer quarter primarily where partially expect XXXX, federal the incur be EBITDA flow, was a of income to plan any In being offset as Echo our by lower in by and $XX reduction higher the on subscriber CapEx rental XXXX year. cut build tax equipment we'll will and the in a $XXX to Free lower taxes Jupiter be than our expect was we not in on do CapEx minus CapEx XX%, related for million, to impact material XXXX be of

costs, subscriber driven was Net-net, was on up primarily cash last over Echo million amortized Now costs with let increase not North little our million service the well revenue our of increase minute Hughes and the negative XX% than compared investments. with be and over cost our gains future in X% marketable but $XXX,XXX very due be enterprise as of international than strong segments. only of QX growth. remains in in These from XXXX revenue strategic XXXX new $XX by GenX periods to in over $XXX securities over me ESS DISH exclusive expense periods, slight drop more $X.X primarily down This in offset last EBITDA we acquisition marketing in down by our and revenue previously positive we were Brazil as standards, the regards was will X% impairment in to expect the in our we by expect in sheet Corporate sales assets. due by spend to the a million various partially American amortized material million, of customer North well offset million, year, and consumer and impact from business. was America the the business. partially will though longer EBITDA a capital a debt enterprise was new EBITDA growth, $XXX net current on that net year, leases. of a year. higher associated QX to expect In prior over a to year as over the $XXX due September last primarily as regards HughesNet a a and positive XXXX Obviously, compared be in recognition other as that an expect to recognition cost was and certain to EBITDA standards. revenue decline revenue our forward. that recognition a to In the we QX minimal the to XII of intangible ending contract the with costs a the X% result lease increase past. in revenue quarter revenue offset unrealized of an impact adoption going balance

over me comments. for let back it Now closing Mike turn to his

Michael Dugan

closed year, expanded launched of we've ahead North you Okay. of successful again, level consumer a profitability in us. opportunities managed balance high three Thank after is our hard growth clear you, jump the maintaining markets work with a lots and for to business, overview lot can of that very American in Dave. satellites new great The team's and of a strong consumer see a We enterprise sheet. growth, out teamwork, started and internationally while

are are take industry, As considerable across up we We these one those very and changes. of advantage changes our we companies. for and be interesting EchoStar of technology well shaping is to The service future. look that to offering companies for opportunity believe that a strongly exciting positioned provide

responsive other to sheet extremely non-organic. balance premier the and and on both us industry, be which pursue organic opportunities, in how the have flexible We we growth allows

the alliances and the strategic With we to out. absolutely be place I'm the major close news in communication industry, frustrating With capabilities these global integration resources next enable development we network to must the are necessary taking admit networks. technology the and XXXX. remain alliances for been play pace looking I very of that bit generation let a organization, within know-how saying and as to convinced creation that it's the slow the by engineering been has but player me have forward a a and interesting satellite how exciting that,

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

Operator

with [Operator first from Instructions] Raymond comes James. Our the question of Prentiss line Ric

is line Your open. now

Ric Prentiss

Thanks. Good Hi, morning. guys.

Michael Dugan

Good morning.

Ric Prentiss

Hey. lease, color an the on of XII if mentioned Couple questions, asset. Appreciate intangible I the you but impairment could. EchoStar an

comments, how was. the I is you that and how know be and you DISH know was VII, us think, side some what guys think much Also revenue about on happening Let much EchoStar that there side there. your might

David Rayner

Yes.

ESS corporate million. that actually a also totaled few about a on $X impairments million. was couple of were in about $X that side. were the there group were actually It the impairments, On the There impairments smaller

about impairments million two, those the between of quarter. $XX So in total

Ric Prentiss

Okay. then VII? EchoStar And

David Rayner

of EchoStar it and this VII been know, set the date, to as expire current as right now, you DISH. June hasn't by is in of historical lease, XXXX renewed

Ric Prentiss

Is think of involved magnitude what or there that be we should renew one? they a if order ZIP about might an that code don't

Michael Dugan

it's too out. early to plays about Yes, think Yes, how talking I that that. start see let's

Ric Prentiss

Okay. been the been the don't out hurdles the frustration out all specifics, of obviously, make options slow Obviously, to seen? of understand sense. be your some but pace talk and and we there us would then you've in what's to to ones That that And strategic there. just hear hurdles want that Help strategic kind of great might what sense of what there? And the unlock kind have returns? industry catalyst help makes

Michael Dugan

have think I we where the we balance I of looked the we value. so some things history have in, itself great over be a on the has invest. couple to about ended years not industry shown of getting, We've is careful but sheet, declined up we at and in that got transition, think investing last

to if add So we as be want color to can Anders, very forward. you we you some go careful want? that

Anders Johnson

definition in opportunities networks on I going now satellites really of access be and cause to have spectrum the on networks the will traditional us there role the in the terrestrial industry sort of to FSS big as how converged a of growth industry the right meaningful for some really No, excited standstill as developments geostationary some in - opportunity into opportunity and of but meaningful terrestrial upon as involving soon uncertainties going opportunity in well what businesses. role launched the for traditional a be networks consolidate will themselves to forward have because because NGSO think the have be the the a in quite about the will capabilities be networks is of market, will well networks terrestrial us GSO impact ultimately Certainly, us. is the the the future, is of the networks those the consolidate it's as that integrated impact

Ric Prentiss

attractiveness are at your I've government, consumer, expanding as sense, thoughts be enterprise about Makes of the looked beyond and geographies? what different may

Michael Dugan

few segment market most have enterprise a have but world. in not obviously globally, in over a also not out too. We're for segment continue in that the the focused but the the trying regions have States, we on the I and there. and if is few very doing of in the think major long government optimistic we're be do, entered presence something we And only but United market, we we been grow build active Still we're government a that time, to The we'll the our very programs business, can well to small, years, last might build.

Ric Prentiss

guys. lot a luck. thanks Great, Good

Michael Dugan

you. Thank

Operator

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

now line Your open. is

Jason Bazinet

I a on Latin questions couple America. just had

to was the you of early? net quarter still side broadband blocking launch related, think, the just on out those consumer penalties? all of around terms adds the in that terms say sort in - at if up there anything in had the declining strength you means in or Would elaborate of is called some America some K, of or in that You material North and Colombia too Colombia. language it's that Anatel you the extend what put the And you request I on your Can milestones. in

Michael Dugan

Let want off we activity Brazil, just those a get in sub-ads QX like in up talk But expect expected not me material about slow we going cautious start. did for ramp, Colombia, you Anatel? in But this, to and minimal. we relatively forward. address to maybe that more QX. were operation numbers That's in clearly, start progress Anders, in start a were a the to

Anders Johnson

No.

not the given. or not and having had we're an clear time slot bring we action that and spectrum. the in far Ka auction in subsidiary ultimate any we Ka-band XXXX these being you Anatel, but were to or I and we taken work awarded Ku-band, back path licenses BSS of as completely the both S-band. in successful and lack ours as Anatel think for well a We I license S-band, were awarded use, Ka-band the mean coordinate years utilize a S-band a have to otherwise requirement the and we Ku try to following clear the and as into able of

were essence, S-band Anatel an Ka not the extension milestone, to a willing expectation X-year they and forfeited of that us extension back. in We give licenses we to so for and the

license the degrees last slot core license, we year. use in into at Echo Ku However, there the arrived BSS a successfully XXIII XX is which brought

Jason Bazinet

That's right. a great color. All Okay. Thank you.

Operator

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

open. is now line Your

Giles Thorne

had questions. you. three well - Thank I

first sorry, question you in answers. some - the questions, SES bunch and I'm March agreement would XXXX? of short very now FlytLive and the a comes the they're of gone it's The of all that with service but network signal With back signed the Thales you for to It discrete XX states. How at end does active?

Pradman Kaul

active this now. Yes, is

Giles Thorne

Okay.

So will off starts the been under agreement enterprise revenues from run you've getting here? that that to

Pradman Kaul

this answer it's is at to The customer the it. get first yes, but Yes. next few not we expect significant on but months, stage, our over

Giles Thorne

part then a XXXX That element go capacity live capacity going from was XXXX? of And When from the was Okay. did healthy in deal live? and XXXX? that

Pradman Kaul

is yes. the answer Yes,

Giles Thorne

that from? live And when go did

Pradman Kaul

ago. months of couple a Just

Giles Thorne

in when get that launched does switched get SES-XX off And XXXX?

Pradman Kaul

don't so. I No. think

Giles Thorne

Echo XVII Just anything would augment in Echo capacity the lease and XIX?

Pradman Kaul

right. That's

Giles Thorne

And finally progress very the are understanding. FlytLive, life some then concerns in live of the to have Okay. those any customer of boring, legacy indexing for Thales TV sorry, customers lack shifting but around time. you especially just given Do I'm

Pradman Kaul

we have background any that out. expect as enough We're takes I No, ramp we're don't to think who optimistic that in so, services. people like a And their Global very network, Thales to that Eagle pleased think there and new use think very, opportunities guys, our equipment are I up. things work will I while and two it

Giles Thorne

queue that coming Okay. doing I'll with then to I'll the And the and my for question the point, ask project back then to second wait in you're third, get try but [indiscernible]. back and the

European some of ViaSat rollout resellers, and distributors If you to JV. push a definitely Eutelsat speak the to these behind assets there's

So for do the going broadband equipment ViaSat Europe? market you in consumer worry is that suffocate to

Pradman Kaul

would ViaSat so, are on more world. this I the effectively at than share. we we stage, at over all think say winning compete don't I with our And very

Giles Thorne

Okay.

right. all So

the okay? is JV, with Okay massive consolidated feel that distributor aligned within you a

Pradman Kaul

XX% We fine. the compete structures over with them that's enterprise been we in have share all market Yes, think in them, different against world. will and competing exceeds the our I corporate

Giles Thorne

queue. get I'll in the back you. Thank Okay.

Operator

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

now Your open. line is

Andrew Spinola

European Pradman, fourth down seasonally think would last that the and was maturing you sort appears quarter am when greater function marketing of higher in fourth North typically soft it I distribution wondering subscribers was and of were was would at sort and just in level? in you up to? quarter. you quarter the What that of we express to the view attribute expect just a to America this talked what Or sort subs it I starting operate spend? It channel be a

Michael Dugan

Generally, found what we fourth quarter. second the is best that is quarter the

is third and quarter then best the behind First it. second and the fall

maximize the pull of quarter end for of stops So out fourth the number is because also to an the fiscal subs. it's to important us quarter tend the of the year, all we and

particularly satisfaction their the delay churn in GenX GenX that down that of the the there I result from postpone work went team market. very the our and attractive I ViaSat But competition because launch think did with the ViaSat The up the an all excellent high. think potential job customer the pick was to of was also X also. offer

of gross churn, ViaSat to the contributed So adds, the in combination the a all think quarter. a them lower and us of having launch delay nice competitor, as I

Andrew Spinola

high? of reporting from a stock pull lot over on I out today, like you looked going Got And that without through can guess, maybe and gotten high X% the but through stock your as at Is your help apart unusually am but Was quite the weakness numbers very the was explain stock, gone vantage all I XX-K point. call that anything might yet? just spending quarter your companies least down this your there's that, what this is understand And having that my find me to good there just I wondering, in point? yet, I quarter? entirely earnings it. I'm at XX-K, a haven't this

David Rayner

higher marketing anything other find I we to down. what They hand. usually there as in in out. sales would you was the growth. think ask mean, because and that don't of I But that going K a I were that's don't principally hand called anything stocks that, Andrew, I surprising not already certainly, than subscriber unusual to But costs you're have really or unusual haven't called are out. go question think we

Michael Dugan

If that We as long be for hide the you in not just not us to don't followed you but us time, like Q. something are. information, out as it's highlight we're astonished pointed a should

Andrew Spinola

through working the Fair enough. still there. I'm just so what's K, in I'm unsure

right it Appreciate that's time. I the now. for think me

Michael Dugan

you, Thank Andrew.

Operator

next the Chris Quilty line Our Analytics. question from with of comes Quilty

is line Your now open.

Chris Quilty

become the Wanted segment. to Anders, for kind kind quarter satellite with couple incremental a know but see I past the the - capacity, old first with coming do been uptick? have reverse since constant have of assumed a sequential that we in satellite. slide the you I start online, of QX mean, kind you've do you you of where years have I new Has slide? of ESS might you revenue incremental know And this DISH Thanks. the

Anders Johnson

for satellite course, lift be replaced. subject market first than while FSS we're fully see is is Echo is the a fill actors are quarter, because the uptick We have to going certainly soft do some for service now, ability of offers in that, an - But be be expecting as spacecraft up. the satellite managing right out because did but an been to expectation on has that Unfortunately, now capability the bad very to a the to that our with there's - XXX greater will first we there in there quarter, will cash.

we faster from to that to fill because little in we're expected opportunities presented utilization were track a to a are December. on themselves it we percentage standpoint. some We on actually able move than We able

Chris Quilty

headwinds Gotcha. VII And you the EchoStar may lease? fair? hit of some coming with mid-year off that Is

Anders Johnson

satellite. few relatively earn it, us. take We we mean, their certainly are with spacecraft continue could, to to with I deployment from because lease would have opportunities to and kept still because as we it to But willingness still it's not seek we in modern DISH revenue . obviously discussions a a they other where that station to

Chris Quilty

is any and And there of expectation you elaborate in any XXXX. the you're contribution you'll XXIII on DTH if Echo material that at of where Brazilian opportunity? Echo And kind XXI can terms Gotcha. from revenue in see a

Michael Dugan

their to right place is continue Brazil a the And one potential to larger And the bankruptcy of very Pay-TV have there. reemerge be we create some revenue XXIII expectation that I the what to discussions. Brazil standpoint. difficult ability be from certainly to going to in in partners on to and to as Well, causing in with talk now towing some done But we wouldn't an some meaningful from to we probing bankruptcy down there's there generation operators XXXX. of is hope want delay that and

knows. never XXXX, got very already the in side, We've raw power interested to discussions satellite interesting XXI wouldn't who going material one addition and I obviously for bandwidth Echo just but revenue procuring that in business are on we've now. opportunity in consider we some third mentioned. On that the are with parties businesses being the

Chris Quilty

stack new is Gotcha. Pradman, stronger of ViaSat plans kind that even with net is a plans, expect ads that your and shouldn't service just the you've quarterly it for seen fair feel question up QX, do service assume how with that of now level their you competition, that record to we adds? what GenX QX, launching in you,

Pradman Kaul

We don't give future projections.

are numbers with look quarter-upon-quarter and business comment not to But the our of but pleased out giving attractive, that. this. trends hate are I'd very So obviously comparisons in on we all-in-all, will we any

Chris Quilty

that you you the Okay. just against generally up plans how stack GenX feel competition? comment And can on

Pradman Kaul

I we a our is enacting follow have also if considering think and should very that numbers, good. these cost very still profitability you to are very, advantage, the

churn. have. I be the continues we GenX is is which can very customer advantage satisfaction, in resulting that to pricing the strong, But think we lower maintain

So I think that all-in-all shape. are in good

Chris Quilty

at on this Gotcha. at can assuming within within is some point of point, And Hughes. whether Dave, a I'm the - there's you making contribution whether contribution us bit And intend that to the more a and segment? give remind aviation all little you a breakout it's Hughes

David Rayner

we've correct. business On in got within business all there. aeronautical the And contained that this unit point to at side, no our time breakout plans be separately. would It's enterprise that

Chris Quilty

mention missing beyond picture that markets it, there and two I'm about into hardware terminals. an Is integration there And about I a when LEO selling excited I Gotcha. think the opportunities. any there? I you're of you're Pradman, in was existing opportunity about think for - broader Is the selling mean, - there

Pradman Kaul

Oh, yes services. selling absolutely, we're

and more be more tend really more revenues have and We you to of ours. about XX% oriented than more services

constellation We our with and our the offerings service their one centers. integrating once service to are constellation geo LEO we of offer but will the significant the hopeful continue continuing services are in our then using up and geo very LEOs satellites,

Chris Quilty

right bundle do My ways? with to the the OneWeb your hardware-centric? question was, Or OneWeb, have have of is - do resell in arrangement and part you from services as now more you the ability agreement them certain

Anders Johnson

are network. in arrangement we services hopeful right on working offers - hardware-centric, their but getting rights and to of the The is essentially on now

Chris Quilty

you. Gotcha. I And Thank other forgot my questions.

Operator

Thorne follow-up We have Jefferies. question with a from Giles

Your open. now line is

Giles Thorne

converged ideal hear satellite a interesting on towards follow-up the Anders is around that an networks, Thank aspiring in you. of comment the exactly? It would what a and just has tradeshow what vision world, made our to was be - you're would idea it your and

Anders Johnson

exist never the to is as But right especially Things that through defined Internet there'll level think networks the to declined at seeks gain access because really XG they've going for not recurring interest with - is, bands more activities built more satellite be gap various the ubiquity regulatory filler had to regards I while to requirement be terrestrial access and as everywhere. and of machine-to-machine will are it's - becomes to. be applications, a really terrestrial only here XG now, out

will be opportunity architectures So will and a new also the the hybrid that the are space creates with but converge the side, that to XG for applications of going the all to us of all new work. player network satellite facilitate some both be networks in how functionality integrator those

Giles Thorne

placed for for activity that role low [indiscernible], Is operator? play? you so reliability low geostationary that's in and what's this can one but in by application, who been throughput, infrastructure done high invested the IoT there far and What's play coverage, your sector, regional see the

Anders Johnson

Well, follow historical am sort business the the of not because geostationary will configurations. redefined the contribution I that will of opinion its be

think certainly also defined as us into built now a are technologies up will to for that and and a be future NGSO and - there the platforms, as are in machine-to-machine that in role well to realize it define think the will I opportunity. of be available to satellite as lot IoT be arena. to And that networks the both I us geostationary

is through other view, the looking it be applications, now, the good obsolete. to lens not done. I geostationary business a is proving at business think because specific historical than Right is

Giles Thorne

Fair enough.

Operator

time. I'm at And not questions showing any further this

Michael Dugan

and thank ahead the We you. go then, will call finish

Deepak Dutt

Yes. Thank in attending everybody today you and day. good for

Operator

program conference. you may Ladies the your a have disconnect. for and This thank and concludes Everyone gentlemen, great now today's you in participation day.

EchoStar (SATS) 22 Feb 182017 Q4 Earnings call transcript