EchoStar (SATS) 10 Aug 182018 Q2 Earnings call transcript

Company Profile

Participants

Deepak Dutt	Vice President of Investor Relations
Charlie Ergen	Chairman
Mike Dugan	CEO
Dave Rayner	COO and CFO
Pradman Kaul	President of Hughes
Anders Johnson	Chief Strategy Officer and President of EchoStar Satellite Services
Joe Torres	Associate General Counsel
Ric Prentiss	Raymond James
Jason Bazinet	Citi
Chris Quilty	Quilty Analytics
Giles Thorne	Jefferies
Arun Seshadri	Credit Suisse
Walter Piecyk	BTIG
Chuck Goldblum	Hurley Capital

Call transcript

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Deepak Dutt

Good day, everybody and welcome to our earnings call for the second quarter of 2018. I'm joined today by Charlie Ergen, our Chairman; Mike Dugan, our CEO; Dave Rayner, COO and CFO; Pradman Kaul, President of Hughes; Anders Johnson, Chief Strategy Officer and President of EchoStar Satellite Services; and Joe Torres, Associate General Counsel.

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

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

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

Joe Torres

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

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

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

Mike Dugan

Good everyone, earnings you, Thank to our call. morning, Joe. and welcome

want EBITDA to call is First Hughes in the 'XX double-digit difficulties have We business you guys. our once host for the a last QX and two aggregate and apologize did we quarter ESS again technical I revenue year. segments second call okay growth quarter the we in and have solid over generated when same

Will segments turn usual over as their Rayner now by followed Kaul financial close about Anders it talk David overview. me the who Let Johnson and with will Pradman for questions-and-answers. quarter

here So is Anders.

Anders Johnson

last revenue was million to million EBITDA XX Mike for XX quarter compared million million XX last good the Thanks, morning. was ESS XX versus year. year.

for transponder other that pressure government is we service as for encountering remainder operators has to of on on services well. opportunities been capacity KU of some fixed rates by pressure businesses the see satellite expect the U.S. XXXX, and expressed same rates band Our

remainder enterprise, commercial year. customers, the expect broadcast for media environment the including and our and of For difficult mobility business, our FSS the also we

one end at by aeronautical of XXX. services the X XXXX. of on EchoStar June extension terminated the include Dish the customers entertainment, of our EchoStar sales quarter Second in-flight of lease

they will addition, negative result on transponders band revenue forward. nine, XXXX. a These X, impact In KU effective on going terminated May our X in EchoStar

business. developments in has MOUs with place MSS our for of on placed with major companies. EchoStar in enabled the mobile to European EML distribution has Now MOUs a few communications EU, services

discussions We with potential a of throughout to are base partners distribution technical conducting broaden number also the EU. EML's

team it Europe. In end-to-end and addition new is over EML turn applications to for these pipeline Pradman. I’ll discussions products now to throughout our services IoT the of about excited and

Pradman Kaul

Thank you Anders.

delighted XX Telesat to of was our K-band First refer all I’m hosted inform West to we which as July in XX. on launched you successfully that TXX payload

Peru weeks in countries open enterprise the of in will quarter for the XX new coverage Brazil Columbia complete by provides Over and and this will quarter WiFi are Chile. the for additional the capacity we next intend West in-orbit fourth HughesNet consumer use online system in fourth us to and capacity for testing few solutions capacity We targeting service HughesNet other and to community Ecuador, and in bring cellular and our thereafter. Peru, to backhaul markets commencement XXXX. followed in enable services

world. high broadband a consolidate fleet to throughput our position worldwide, one continue that internet We of assets as satellite number largest and satellite the the provider in

A but ourselves significant against run top for do earnings. and get growing enabling additional and the our line to supporting track X anticipated in revenue The Jupiter the quarter. second capacity We I currently XXXX. target the with performance with before will satellite over speeds and XXX have satisfactorily. are is metrics construction of our of and words development in an of overwriting Megabits business the goals. us few proceeding bottom measure It is primary service Our to We offer satellite of into our design several the download growth objective consumer. other

We last decreased General, Canada. the received major Yum! and new U.S. ARPU in our just American exciting path consumer ConocoPhillips, X XX year for for quarter up band while Brazil noteworthy base XX% services to by our has of period XX% Mart Despite at June the financial In year. North where system by banking and of in results we business subscriber enterprise EBITDA growing trend XX% churn business delivered satellites. last from sites. thousands to from XXX we leading I have new of primarily TSI XX% T.J.Maxx quarter Hughes, XX% year. connecting Jupiter headwinds multiple same in being we by in Baker from margins these the consumer revenue the and Oi tens in Eagle, Brazil both business and and EBITDA our first the driven this our in XXXX mentioned. since XX% IGT, launched growing our Thales, the signages Rakyat grew through great Also Indonesia, Save year Global These a American over Bank over results FX gen achieved geographies increased orders six were power digital results Indonesia the PSN goals months locations, Brands, are last across continuing revenue orders handily second same and their for and high plus We resulted we that enterprise-grade up

steady strong to continues a us going backlog deliver providing business forward. enterprise Our with of order growth

Wi-Fi opportunity we the provided and Brazil. XX,XXX opportunities that currently in growth estimates Asia XXXX. over These exciting community enterprise backhaul Africa, Northern to access is cellular based today, have cellular our date Wi-Fi is sites access us project backhaul Another by and will across consumer strategy sites are community America. XX,XXX Sky and in satellite in this have over an Mexico, and of are research in for Russia Latin cellular uses points part hotspots sector. partners enable and Wi-Fi deployed fast-growing our to operator Community the there backhaul well and XX,XXX Internet service triple over for Wi-Fi. for important To equipment we

to continue expand in and Global the business Eagle, with aeronautical also our Wi-Fi Talus. partners We SES presence our

Our over completed first we aircrafts our the XXX based of Global recently Eagle. aero on and used the for technology Jupiter technology network on installation is

We of also signed an received extension the for of Global from additional and order Spirit the Eagle Airlines. to operation initial support network an Talus

growth another and very quarter conclusion, I'm revenue looking to in So strong forward profitability. continued in we had and

Dave. now Let over it me hand to

Dave Rayner

a in Thank $XXX of the million, from define same which driven operations XX Capital cash income from EBITDA growth. year, period XXX have CapEx you, related driven in with the over XX.X year, driven million quarter an Net of and year, expenditures higher the revenue been spending result higher increase on biggest higher CapEx. was as as the of over million, over primarily in lower increased million the quarter the the in an Consolidated minus of quarter Free and million Hughes XX% the last to million a primarily primarily $XXX second the QX, continuing would XX% unrealized year, was were was EBITDA gain Without the quarter CPE last EBITDA EBITDA. we increase consumer compared the XXX year. by at flow, revenue Pradman. last Hughes investments. in XX% by X.X revenue to EBITDA growth being million a investment last gains XXX last components. million our and margin satellite by

million growth Hughes primarily last margin XX% and marketing satellite. of equipment to ESS by by was offset QX offset unconsolidated and partially Jupiter EBITDA a rate as was increased over primarily as million, $XX by have from by sales. XXX a was year, a at the services costs service to due Turning same associated December as in EBITDA Since and decrease XXX. was exchange-rate growth Hughes affiliates and the the primarily in by result revenue XX primarily on year year partially as offset vendor by the XX, revenue in Echo last million, net losses. well offset usage of first QX, in losses. in Dish offset strategic gross in exchange consumer the with partially other Hughes year, to partially growth, driven $XX EchoStar EBITDA the from last an primarily compared the quarterly revenue investments revenue of higher compared capacity related QX unrealized in Hughes termination X% $XX year-over-year partially with up reduced by and and X $XX $XXX increase last a down by and the respectively, Echo segments sales XX% Dish end of the and earnings the over with driven QX million to on EBITDA million in lease revenue consumer $X.X gains quarter negative termination service, well II revenue million settlement by and was X.X%, the year reduction. the last to lease Hughes increased million, an launching AMC-XX quarter Corporate reduction

in strong be of net leases. Our than debt, $XXX all of marketable balance cash financial very with inclusive million $X.X All sheet quarter. very continues of and securities capital to less billion a positive and

turn now over to back it me Let Mike.

Mike Dugan

I everything of have for you. Dave. best you summarized Again ability our Thank the to think we

call do our we of strong now, correctly start works answer have to so over I going turn think lot conference but I and it as to was quarter it question a to this operator always. the got back session. hope a I’m work

Operator

James. Instructions] first question question. [Operator Mr. your line you Prentiss Prentiss the from comes ask from may Raymond Ric The Mr.

Ric Prentiss

or call. move and and on show $X on that the that think the Dish talked Dish to Aware lot the So XG about narrowband us I side call need of IoT great cost last to said then the EchoStar Dish balance how week billion there things desire the on sheet and focus Dish $X.X get about today. on EchoStar debt cooperate? that is you is, to being at how Tower need billion do network a networks of thank the the billion business you great XX a question might Charlie and really a help joining ultimately EchoStar you out? the and into we for might for maturities think Charlie

Charlie Ergen

when any differently it talked long for think we about time. a don’t I

they their think have I look boards their to think completely so independent what's that different, run at businesses do. that that company best they'll already, and particular I company they for continue cooperate are the

are the obviously obviously companies I Dish be thing forward the in that satellite United connectivity the business. the is think one have to but you think I the ability both around world. in the in States connectivity business going primarily is

new connect you of I at we at opportunity might that's good today. and Hughes, those world look think going things connecting satellite particular that I terms of do see where certainly which of as like and and a look and in obviously things things EchoStar at opportunities pretty job So that kind like IoT encourage that we

Ric Prentiss

So in year the year we any with the any far box the the companies? like business a two a to thought and of needs that happen two half business the other Hughes anything asset have set-top swap exchange. there as movement as between Is for next or ago

Charlie Ergen

that business top I think with major need together obviously box but to engineering a I directions being the ultimately look with always of think and particularly go in go kind to together. -- EchoStar boards different growth opportune move set satellite can assets at satellites things but was those the not

Ric Prentiss

given call is the the we how last auctions And should really to of to probably think United balance is, about we in be in as week, looking it sheet the material you in the being some auctions Dish the think player my global final States. Dish a States EchoStar in mentioned question United upcoming play? the of EchoStar more that elsewhere or going was on not participate Should your also,

Charlie Ergen

look that's know actually at know they they should of guides time ask really question whether auctions from might think that at I you know Well time auction Mike so have I you'd EchoStar but don’t part auctions add EchoStar the know. aplace to going that be to at with if they where discuss within looked have so I I to CAF your to that looked to them that, don’t don’t that anything I had they and want

Mike Dugan

we current are to what business what the interested have of that don't we at But things EchoStar structure just at allow in like sheet looked the but Well that may that is be that. in exactly or type we auctions future the EchoStar. is going always at I obviously the certainly think -- also we've balance and auctions to I have participate us with think just Dish in opportunities CAF aligns to interested we'll see know I auction in looking

Operator

of question Citi. from from the may comes line your next Sir Your ask Bazinet Jason question. you

Jason Bazinet

consumer of words, or out I economic give churn hard other don't you most you for us just the cash business think the to sort companies business pretty in right think because the I time broadband figure had question of a a on generate the a about value when all number really companies creates flow. SAC sort the if of of it’s

free is You of another NexGen growth because subscriber a do look the cash could ask? satellite you confirm economic would don't I that investors they reason we and lot guys and launch to goes of with what for really sort the suggest value satellite, the subsequent could there's math launches that at they the see that

Mike Dugan

of amortized certainly on you're one off incur. balance are but on building investments consume growth obviously to I returns of the a get CPE we've model flow adequate as service our is there new then and and those form SAC does overtime, the things of investments. to into but the not does those an the business, right, very we're goes But piece well to of free towards last that economic growth of confident satellites EBITDA you need basis satellites way and which it, are annualized at in launched sheet long look the mentioned worth seeing the but is would returns the money that of a existing periodically growth certainly I'm we very, ever return were $XXX of launching the CapEx where that adequate coming to were at principally is year EBITDA go think cost cash I the after returning going quite the seen we Hughes any the in mode million specifics on I above we so mean the

Operator

may Your from Quilty from comes of Quilty Chris your next question. ask you question Sir, Mr. the line Analytics.

Chris Quilty

I Thanks, question connectivity a the wanted on to business. inflight have follow-up

that Talus fair at to that time your I mentioned SES contract think customer, that couple point using launched first a this and you'll the working will is be fulfill point presumably in to transition of assume means XX until West what as capacity that a is Jupiter that on a Jet you'd a -- is you years with to then over it at satellite? be

Pradman Kaul

you are Yes, right.

continue We them capacity are use using are for there application. the SESXX. Jupiter to when and traffic we they back planes no move will currently plans available. going that But new Jupiter may are The and is SESXX to grow to move to onto

Chris Quilty

competitor same you way a customers most market in of And with that successful in they assuming that's Talus you? a in satellites existing customers, coverage this frequency same But winning back is create lost basically course some Does the which of their for to that date. patterns. got point overlapping IFC at have

Pradman Kaul

providing right? from the in-cabin the to we not remember market, the Well, connectivity We're internet. in plane are

So directly separately. to networks. two They there there, are between is will different just no networks conflict the two continue that operate really

Chris Quilty

presumably I EchoStar you some you? assets half since a for divesting be is your to would Charlie that assets, obviously for that mean at And mean more swapped does interested mentioned a just on of be the guess satellite that business the point, you buyer fleet I satellite and question might into those focused back in the not they EchoStar

Charlie Ergen

I not question. your sure I’m understand

Mike Dugan

Dish Chris satellites. about the are you are talking

Chris Quilty

the of the equation. From Dish side

Mike Dugan

they there ventures plans tax at like and and flows think decisions the does and there's to business utilizing their and time make satellite if made they sheet the where from EchoStar to issues I long-term think and are based if and on tweaks is think looks taxes things I bonds cash be that and thing. decisions time that balance I Dish their same

you that’s that be be plan to both you you things you particular with something I assets something about and test to we have in not companies. think you theory on that a what being day if and concrete changes business wake if business change have But management theory able a up and as do time from time in bought shared need to assets need or you everyday -- every to quickly change.

of and been our at most the caught for long-term kind some moved are In of on and haven’t is have in our geosynchronous thinking from suddenly having. with where geosynchronous. most plans I I’ll And pretty thinking more changed my takeover market industry part that and smaller leaders. evolving the the Fortunately, high-throughput least LEOs to is one experience MEOs world's now we our is satellite the that that the It's more of have of think satellites that satellites Hughes satellite the share has become much. been directions the of and of equation say some become the from they point more gone up as

is those those and I of areas. our opportunity thinking in evolves in think lines, for sure, whether on terms there growth that

Chris Quilty

Understand, and spectrum in complementary spectrum have EchoStar S one cases different in Dish to there final question use band somewhat way? and both that complementary an a geographies. opportunity different use Is companies

Mike Dugan

geosynchronous and band there both creativity there tough different they band things that'd creatively be an would that valuable can pretty to I pretty spectrum around but think there's build ecosystem regulatory. tough being is to do maybe that that's not S today, -- good some that you do with geographies could are S do and are given cover ways maybe into different different geographies but areas, Perhaps there they might are there satellite somewhere you are do so but be they're can both so they you that

Operator

from may ask question. your of comes from you Giles line Sir, question Thorne Mr. next the Your Jefferies.

Giles Thorne

questions. I have three

one interested the extent be comes -- then would participation questions Pradman then was of for hear your approach. the And of I in to in for question was Pradman, to year. Inmarsat's second two the situation the second for investments around First, part to which couple Charlie investments and Inmarsat potential thinking the Ligado questions

integration off of and for quite investment to XB same to it is third Row also at you a to commercial you've so has people and the And between thought but in that's the now area segment you co-investing with ever like system feels at rights around direct one set all basically candidate that ISRO it space within national for wants make MPower level the question the that the India's as about see second market been assets SCS satcom, about an contract And first signaled the are more table. clear a deeper obvious if the modem party spoken in of The and the ground exclusion a and holistic now have investments, was power the the Boeing have an whether that? the of the antenna, time you much segment. to being MPower India

Charlie Ergen

know I there question maybe you answer so the Charlie, question question Inmarsat. about did understand generally part was the was didn't a of is I'll the specific specific about I This Speakers] Inmarsat just [Multiple

Giles Thorne

agreement It much situation Inmarsat it rational generally the with involved would questions the through be corporation part was talking Legado for was how Inmarsat specifics the of interesting and hear you to of approach? your the about the

Mike Dugan

corporation Charles? the Well, agreement

Charlie Ergen

didn't question. Okay, know what not specific going question is I know -- maybe don’t hear I to corporate the the the I don’t I'm

Mike Dugan

Legado? to related that Was

Giles Thorne

Yes.

Mike Dugan

Sorry jumbled. Giles, you're really

Giles Thorne

the Yeah, good very apologize. coffee so not is

Mike Dugan

is contracts some gave investors portion bit should more of Inmarsat probably maybe the a are Inmarsat technology their we probably to there value and both satellites, is Inmarsat different was the Their Street what's of frequencies, Inmarsat. in that some they more some I have so one technology. obviously get both would reverted the we between back value insight some synergy valued believe potential probably spectrum approvals both still saw we in if saw our in have The connectivity, don't Legado is Legado if than was obviously not, still and some from more value and bid then we where potentially really do in part we only analysts The first public, The we that gave, than those into any one Hughes benefit don't companies little compete. in there

both systems both would certainly think Hughes and their has in the from S-band have on served well be segment things there's I that their ground going we space Europe. of things and some like

lowest We Inmarsat capacity and America the cost over very brands have of cave constrained. express obviously has life coverage, global North with good capacity some global but

that find The we team times kinds of required to private company. work UK for things in we together, honest do make not known put as become companies takeover a discussions eye. assets a all that disagreements typically if our Inmarsat have can so period like at unfortunately in public the time So we've in at that’s laws things some a it’s company and of that Normally good valuations companies don't those to sense long like way some private. to discussions least to have happen we together, so but Many public. management the

there than you consideration offer I take the XX% we has a think was was was offer premium Inmarsat been but another further on that is XX% where -- average when was can where over XX% had to an complicated detrimental take real it high more trading by public the a Inmarsat can that so really probably convertible basis. with to premium that that probably been trading. that nature, premium really made It had in that stock to detrimental take

was the was they inadequate Inmarsat they offer inside it an look at but of to not and the management company with knowledge don't that our their allow perspective, due diligence. So has We still felt when value that obviously aggressive offer a have from have that enough. the information they

getting us of through got EchoStar be thought other which Inmarsat due surprised of went coin have they they we if would diligence On shareholders be the here. they the would pleasantly piece side a the to would value

of the the wasn't there. we but we the believe, information inside information that something thought in value So be terms that of Inmarsat, based haven’t we value any Turned had there. there out really on there might

So still about that Inmarsat the done attractive the process. and thought was look the nothing was we companies there We was what good. is strategically but think the the things we of themselves can thought hopefully company putting specific companies. highly together and good. was company our outside at together is of for position think the total both they We is things We that way hope we there's management Inmarsat do -- team entire they've benefit

Charlie Ergen

address Pradman a want And you bit. to

Pradman Kaul

Yes, problem would because again with the the of line, repeating question I mind couldn’t hear you questions? the the

Giles Thorne

up The more succinctly. them market. ISRO much putting make to India in national decided India two follow questions a has

be will commercial solely it So all a operators. the Indian served of to satellites market exclusion by the owned

So was second close door? in power? invest does the And that OXBM you the would question

Pradman Kaul

days Indian pursuing would under for requirement last about be regulatory for satellite Indian policy we and and telecom any the owned our if that few let's succeed. premise in all first. X were years to one and that's been an the The always would to But we've or XX be these requires would over used for national in meet been Okay, successful permissions of pursue that continue talk India. policy that's been domestic hopefully And new an that years. we'll satellite there getting that and satellite India we years has

a that's sure have the at of something we scheme that's MPower in number one that look things -- times of investment the and in I think the Dave business normal opportunities development at of and Mike the as I'm that. mentioned we have looks organization that On opportunities constantly

Operator

you comes Your Arun your next Mr. may the Suisse. Sir, Credit of question ask from Seshadri question. line from

Arun Seshadri

hi, for of Yes, question. thanks things couple me. taking from A my

if how quarter, were net subscribers satisfied adds some net give near the of in terms going makeup where see the of and could in adds in generally? the color terms And in the First, term? us net just you you of adds you

Pradman Kaul

continue satellites out. are beams and call As to to in and going are doing grow But fill-up gross we in I we we are EBITDA growth few continue our that is because in filling our flatten will think The EBITDA, out quarters revenues most good and grow net what the we on. and next beams and of as our fill probably our and subscribers the net flatten we achieving will fill-up good mentioned focus I results up. in think and forward show focus to will earlier that's will again high revenue adds the

Arun Seshadri

retire on cash, it. far have being you And think uses about this question I of should cash Understood. prior then guess, case you discussed near-term you mean, use a base in obviously sort maturities. of in of to ownership, separately, potentially, the what that thought we as Got as for maturities? is then I XXXX the and you terms And debt the is Are hand the on you And calls, your converts Charlie equity that the near own to of do continue Inmarsat? term? --

Charlie Ergen

investments the use first months sheet at XX the meaningful we've we're of the still across question cash point board. intent $XXX this looking in terms for to of our maturity half take be maturities would got obviously Let that, on point balance at that out and this about repay me to the million

repaying the the now as may plan situation But be that to here would refinance right it. balance versus as sit sides change debt So sheet. cash we on

Mike Dugan

And as investor in been I far we as think I now we've divestment think probably for sometime. it’s Inmarsat -- long-term

Arun Seshadri

And forth? deep additional bid stock that go? it terms all just at trading of, least In of did EchoStar's offer guess, follow-up? sort stopped other a with just at with and and thought words, the the made process? And Inmarsat, Understood. that levels was influence time the lot of in ask that? then out Can back was did how in there, like terms it was the discussion was time the the -- lower investment it I is was of was at there one of an the or Or at made I public that knowledge, you

Charlie Ergen

EchoStar I a Inmarsat. the in think much we at were really of EchoStar's obviously multiple multiple lower challenged our is sense than that

much semi too the that more in and least for piece the you challenging stock part So, that figure -- the initial pay higher for premium was was challenging where of of more at because the bid EchoStar nature pill be paper. higher to paid converts was you you poison our the other us you

So I of was the Inmarsat. think think around offer we way it's the of something was look it my real went that another was the the about at I the not Inmarsat. offer stockholders was There $X.XX to $X.XX $X.XX for just more to $X was neighborhood holders convert in like recollection

not was XX% that over So premium. laws again, do don't was of UK really due discussion. wasn’t And based you you there total allow have they in problematic structure what it they from capital a much our -- to But on diligence takeover that’s lot perspective. and have discussion a

So time really -- this on as same as do. them. just the information Inmarsat had known for we company call a the and highly people long We've we have don't of think

Operator

line from comes Piecyk question next you your ask Your Walter of BTIG. from question. the may Sir,

Walter Piecyk

offer? But was was asset the low you catalyst just -- have all and that you know just for you company grab stock very just for about years. looked was catalyst what inexpensive very catalyst and to for have obviously price Charlie the Inmarsat? a known the Thanks, was while the Was like it did the for what the a you the known synergies

Charlie Ergen

value kind was more there those the giving catalyst the marketplace was been the we to company always company. conjunction than was more we is market believe was the in giving, years There over so looked than the value obviously with synergies, but EchoStar that that of at

saw a at of are look today obviously where is there. the value taking at we the least seeing that Inmarsat So and we fresh some marketplace

a little synergies it than thought So of maybe together. negative we gone. a be on more When and too fair the thing. -- And companies have better they job the and where done a articulating putting articulated company was the they may got that’s by another marketplace people talked

out The other in satellite every I matters the impetus do operator that that think today and business was I there scale subscale. is virtually think

any But are satellites and companies are fit for declining there kinds of a companies opportunities work has MEO are are GEO that And is the latch in the not customers but had to like-minded small an a so and satellites for years most of got regulations big you've and had guys that decline well as is people you there that get think a companies and companies in for gets and there are there's while most all cultural video GEO frequencies there together EchoStar. are forward. guys to LEO get business for have to that business there's got for if of are positive we lot that of going knew very kind are Geo ago opportunity with scale that opportunities to I'm difficult things go ton -- can there in satellite including guys you to going I frequencies satellites very good my upward satellite on there so satellite in going yet been satellite one or MEO guys their lot of guys satellite company guys by about scale most somewhere where have directions themselves guys most of IT different opinion own you've and are in and decline a LEO businesses where more FSS opportunity pretty new big and

that thing EchoStar to think there's look encouraged different and they look EchoStar I board opportunities there. at the out things so Inmarsat was at of And but continue to one other

Walter Piecyk

had to trying European you laws that an I is that these has continue you on are question companies to assume that's network maybe things whatever don't can that prior something there continued mentioned band the way not a of so hopeful Inmarsat kind the whatever benefit future. there that were or if also do the side answer that dialogue I mean for on can company JV both work that buy those do are or the trying with as and hopefully S you in and have You you the are the was to just and of

Charlie Ergen

I when companies, me prevented anything our us don't rejected under there talking I Again, for but except days that or we’re are from was am again is that company you about from think circumstances, talking wrong if about sense. talking it's making that but it's about just business and I there special think where enough something normal of merger short that things benefit so. somebody -- both are correct should things of I know And talk shorter probably course we a together know we that well we make I from prevents would the offer mean I few offer business, another could XXX that think we're Inmarsat

Walter Piecyk

you've replicate S they've of - have progress the the Europe? is band any you've sense and regulatory in band S that - think from in there there the in what makes anything done or to front learn terms try in you Is

Anders Johnson

have CGC which on not intention of was, is terrestrial the to was a fully this which focused a companies relies is on think have band on Inmarsat path opportunity - two for on has to allows two they area have and the the the have on multiple that the down is point, are the launched to case used the for which component that of that our deployment the lot yet we different MSS us built hybrid their I more development activities their for the heavily what has on at out. of developed develop path that This network is the network in very that taken much is focused we've us my narrow whereas broader network of developed platform to while very energy the ride gone S Europe networks Johnson, date Anders the really ground development be -- a understanding

of while we kept the So what and doing their certainly an status on regulatory licenses. have they're eye

standpoint. in lesson there anything from seen a learned our that's necessarily haven't We

Operator

your comes a from ask Your may line question. Andrew investor. next the Sir, Spinola, private Mr. question you

Unidentified Analyst

that the this lack have your lot have you, I feel satellite for There's side? big XG band then will of guess, lower and the the wide a both satellite and role that a this networks optimism on in satellites play articulated bigger with in Thank you a playing XG Dish such be Charlie. satellite opportunity and narrow complicated but the agree some XG vision will are band network people XG giving and role building of better Do industry term. about a so XG you is we in missed missed XG

Charlie Ergen

that's I be just there that should things certainly to is guess big be bit can big move things maybe satellites world the XG protocols I three a helpful. but around things satellite future think that can some mean satellites I XG sorry two really scale Well, in the the the I But on buzzword some think that. internet connect you way the is certainly connectivity economical want only so you do assets if the things to world XG of to do including satellite,

high make continued Second, need and and people and like to you satellite to as don't you've throughput only to major where got back broadband think the to role backhaul the Geo satellite the have mentioned access billion OXB improve think need areas and that earlier the in in sense. then to in of can rural if you satellite is more like things networks Pradman satellite X broadband I immediately some And satellites on the play I I you backhaul broadband think can I there offer bringing things a sense got decade. world there needs get there's next quickly cellular is think for some today can lesser who things and is particularly make big where

of I in the we going of have have the get At view part but not you pieces a world satellites way is one all think EchoStar, to a So are how again big you that all. connect play those company no necessary to some technologies pieces and to and together have have today. the broad to have a

Unidentified Analyst

is where to usually with Charlie struggled business mention going the understand you long-term. did and always video that is EchoStar the EESS of distribution you we've Obviously, call one things trying on plans can't comment plans for translate capacity what the us long-term to you Dish help ESS. maybe how on to but side are understand the are and on Dish's can going what that's this

Charlie Ergen

the I for video I long which it's would kind been the time think becomes super but I video from broadcast, of the business of satellite answer satellite it generally television for terrestrial world become is take satellite of the competitive that the of going main a broadcast names stay there is that declining some away capacity. question is and excess methods of go capacity alternative of think OTT has not away

there kind declining or EchoStar a to of right are EchoStar, things the at other demand we asset but the So asset increasing think, so demand. and bad declining that's on hand is encourage look I news that other that in as

we're your don’t have and high make investing I you -- our a but have investments to broadcast believe is just throughput why accordingly, than EchoStar you we which that financial construction. so in And other decisions satellite

and is the so in we haven't extent broadcast communications things probably of least one not, that phenomenal the we're industry, legacy very as of and Particularly well-positioned, been in of got were strongest next return this we lot EchoStar was the patient meeting a the the don't phase opinion -- good we've those sheet because in at a things forward right well where think one positioned much with satellite they've minds things satellites those been of for. sheet good example companies. the of opportunities the so if see have EchoStar to is it -- team area wasn’t my are balance companies, Inmarsat would at is looked that of are and a a going the but So edge and while just in two of solid heavily two are just and hasn’t it the growth in merger in I too where and and invest that on the area. key been At to have be pretty depreciated you look balance that done

not So EchoStar much not think too of focus so too technology that's technology to their lots I are take not and sheet balance but for helpful things and there their that future. on got they are particularly the legacy they've other of needs much advantage and

Unidentified Analyst

there? last has that question to a always carry a and Fair ask I wanted you and scratcher maybe ready been good bit a obviously you being cost-conscious -- asked bit it's a there's good reputation one well to issued if of debt execute that you it track you balance been process this this as had of transaction being been could question a sheet questioned investors you and help also the have to from obviously It's you think understand little and a a a just people for capital but huge and record on cause long why head to I allocation this been why as cost million long-time a come have behind enough, thought wondering actually before steward capital, always I'm would just really of balance have sheet times for from me. very us have

Charlie Ergen

that in at balance we kind and to prepared several had to transaction sheet able mind if it a that can when and question wasn’t our issued what we other get that was sheet I we would on I transaction was we opportunity materialize the have been come took because in mind was from did we you something had debt would balance markets see, our be and hindsight not we didn’t, that things we do have the just probably try ultimately haven't inside did of didn't same markets I It's we've that then for have point issued and the okay public probably debt so and the good to opinion, the in probably to the fruition and in have a didn’t done.

that down disagreements decision tax sometimes make that different any have to is But regulatory something becomes some on but all proceed out it. find fair lead if direction. team didn’t don't and and and that it So a challenge has structure to a have on sides one get this money best there we left to decision would on management go corporate so is the It the into things yes go have makes mistakes and doesn’t this been of kinds sense that made with we you team and made issues changes may times there either. to… you and you to still probably becomes of the I you sitting from a but valuations decide company but isn't have capital the side to table that you maybe we haven't both and foresee lot seem the development things

Unidentified Analyst

this just acquisition I appreciate primarily is if who we board, strategy to big the that? in driven value value threshold up I are spectrum but other it its Or think are all view primarily was that global by if driven the mean quick can one you on to in primary can across be just on subscale? that operators is follow the converted Not there's driven a get strategy, your we strategy, but the that in opportunity into your understanding that, satellite I satellite the underlying that. by understand expand

Charlie Ergen

it paradigm things now costs that say that sense. much models economic degree LEOs I’d fact moves which shift shift just and paradigm lesser ago and more years GEOs to the I MEOs this into fundamental that through make pretty lower going a way is that didn’t like a are launch satellite is communications and believe

with to digitization and satellites structure advantages So where to the there's together there could connectivity things of and that's same lots I need satellite LEOs the think obviously to platforms how MEOs big of those piece disadvantages where and a do. of And and LEOs that you are and minimizes GEOs opposed separately. take of what -- work as things

the have geographically risk, lot minding protect. management for or who they balance lot legacy got for there their have some a out they to opportunity sheets shareholder or a that are that of think and lots of of can teams there's but because complex, they limited they pretty operators have more it's conservative either So base challenged a so difficult is take long-term forward

and disadvantages word. other Pradman to then to think grow and grow we is don't have up his that’s and if if organically doing EchoStar So those which see its I inorganically. business really don't are a to particular know I ways with the us in there team

Deepak Dutt

more one Operator, time question. for got we've probably

Operator

of may Mr. Our from the last Sir, question. Chuck Capital. comes line ask question Goldblum your you from Hurley

Chuck Goldblum

the want and the could see would if stock Charlie Inmarsat you value? deal the is the of any Inmarsat be to stock promotional benefit offered as more to as proposal I the of thought it you might from there were as so in value a and EchoStar on ask underlying to here happened? the being bit growth just have in the going was don’t -- issue could've issuing higher they stock and the bit out the a of I was wanted part question more but So say guess I value mentioned considering as that as you more what far the EchoStar much deal perhaps

Charlie Ergen

that But particular understand the EchoStar are I’d downside That's Well, so not spending company. we role really promotional. there don’t you any making on a I think is my street management. to say not the and question for sure that’s

to a whether is couldn't some there in low-key a do we Otherwise are telling company but no company. is while seek -- are the be over at spend we going was time and for the you going of don’t the yes company and we hurdle a people get to shareholders. lot running no level EchoStar you day of a going We is of spend end others value it and would do price business time lot lower Inmarsat. you are multiple disciplined something going your our highly the detrimental than to we the in that that go and the with that we conferences to spend what We the a and to of materially the become question up the are to promote what less of about matter

So there go so far could on EchoStar that only is that bid.

Chuck Goldblum

you And look the what's EchoStar of happening and point non-promotion a disconnect between there or yet okay promotional situation where but growing in have stock. down I year generally a being real great the it obviously is stocks this I'm what's the EBITDA world understand you with here whatever is guess hurt I and here perhaps not happening guys is the at

imply there's value of the promotional you it's know up in, on wants do you and could them some value promotion respond have but may opportunities you be So but and benefit certainly is the but it and an on the showing stepping know a had avoid management to basis there's the ongoing in out benefit of otherwise. company a missing to EchoStar

Charlie Ergen

those board out have some come have board in stock that the end mean think just don't you think want end I have on it we day Inmarsat more board looked I worth have enough knew the back was have as has explaining of was of we offer that based and made to management that and didn't working day thought we the we know and of at would opportunity would at the some way to analyzing than and ultimate have looking -- that at on they imagine that economics -- and somebody it a more have they and at didn’t or spend the might and didn’t that's an and most might at are a the proven company I information with at of cash might the valuation EchoStar EchoStar with their on Inmarsat might looked I call time said I be right EchoStar's opportunities. deals was might somebody we know capable inside be. mean the became sense, still of things I the in what you believe said hurdle and this mean that some so think a sometimes side offered they doesn’t to are EchoStar's looking what people but happen will them fairly believe it deals together be other one we and missed how decide the other future more shouldn’t And worth we and they management much resources on don’t

Deepak Dutt

call. everybody, you the everybody participating a really day. we great Thank will wrap-up Appreciate today. Have

Operator

Thank today's participation. concludes for conference call. This you your

now disconnect. You man

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