Pegasus Reports Slowing DBS Growth2/20/2002 3:17 AM Eastern
Direct-broadcast satellite subscriber growth was slower than expected for
Pegasus Communications Corp. in the fourth quarter of 2001, the company reported
in a year-end earnings call Tuesday.
Pegasus, which resells DirecTV Inc. programming in rural markets, added
23,000 net new subscribers during the fourth quarter after grossing 93,000 new
subscribers in the period.
In the fourth quarter of 2000, Pegasus added 73,000 net new subscribers.
For the year, Pegasus added 116,000 net new subscribers in 2001 compared with
255,000 net new customers in 2000.
'The December sales experience was disappointing relative to our
expectations,' Pegasus CEO Mark Pagan said during the call with analysts after
the market closed Tuesday.
Pagan projected that the company's net subscriber additions for the year
would increase 2 percent to 5 percent, but he added that he expects
first-quarter net subscriber additions to remain flat compared with last year's
Pegasus served 1.5 million DBS customers at the end of 2001. The company said
its average revenue per subscriber has increased.
Net loss for the quarter was $82.5 million compared with $73.7 million for
the fourth quarter of 2000.
The company's net loss for the year was also up, to $328 million in 2001
versus $200 million in 2000.