DirecTV Inc.'s corporate parent reported third-quarter figures in line with
expectations, but it said a slowdown in Latin America would cut into previously
forecast revenue and cash flow this year.
In a Hughes Electronics Corp. news release, the only reference to the Federal
Communications Commission's rejection of the planned merger with EchoStar
Communications Corp. was one of disappointment.
'We will continue to work aggressively within the context of the FCC and
Department of Justice processes to achieve approval of the merger,' Hughes, a
General Motors Corp. unit, said, attributing the comment to CEO Jack Shaw.
As Hughes had advised analysts a couple of weeks ago, net additional
subscribers came in at 206,000 for the quarter, down from a previous forecast of
250,000 to 300,000, largely due to crackdowns on signal theft.
And cash flow -- or, more accurately, earnings before interest, taxes,
depreciation and amortization -- hit $196 million, 31 percent above early
But business woes in Latin America led Hughes to trim its full-year revenue
forecast down to $8.9 billion to $9 billion from the earlier $9 billion to $9.2
billion. EBITDA should come in at about $750 million, at the low end of an
Hughes also said its cash requirement was trimmed to $700 million from as
much as $1.4 billion forecast earlier.
In the quarter, revenue rose 5.3 percent to $2.21 billion, also in line with
Hughes' GMH shares closed Monday at $8.52 per share, down 24 cents (2.74