USSB Reports Lower Losses

Author:
Publish date:
Updated on

St. Paul, Minn. -- U.S. Satellite Broadcasting reported
second-quarter revenues of $132.7 million last Tuesday, up from $114.2 million for the
same quarter in 1997.

Net losses for the second quarter ended June 30 were down
to $7.9 million, from $9.3 million last year.

The period marks the first full quarter since USSB shifted
its basic-channel lineup to DirecTv Inc. USSB now focuses solely on premium movies and
pay-per-view special events.

"As expected, USSB's gross-profit margins this
quarter increased due to the package restructuring that we implemented in March,"
said Stanley E. Hubbard, USSB's president and CEO, in a prepared statement.

Hubbard added that some customers continued to churn out as
a result of the changes in the programming lineup.

USSB reported average monthly revenue per paying subscriber
at $23.60 (excluding PPV) for the quarter. The company had about 1.8 million paying
subscribers at the end of the quarter -- just under one-half of the total Digital
Satellite System universe -- plus 111,000 promotional customers. USSB offers one free
month of programming to any new DSS customer.

In last year's second quarter, USSB's revenues
included $8.3 million generated from a Mike Tyson-Evander Holyfield PPV fight. A planned
Holyfield-Henry Akinwande fight this June was canceled at the last minute.

Related