Wednesday, Hughes Communications, Inc. (HUGH), a provider of broadband satellite network solutions and services, reported a decrease in earnings for the second quarter, hurt by higher costs. Revenues grew 13% over the year-ago quarter contributed by Consumer business and International VSAT segment. Earnings, however, came above analysts' estimates.
Net income for the second quarter fell to $1.8 million or $0.09 per share from $9.6 million or $0.50 per share in the same quarter last year. Analysts polled by First Call/Thomson Financial expected earnings of $0.06 per share for the quarter.
Revenues for the quarter increased 13% to $265.6 million from $234.4 million a year ago, and topped the analysts' estimate of $256 million. Revenue in the International VSAT segment grew by 43% to $65 million. Consumer services revenue increased to $80 million, up 23% over the second quarter of 2007.
Operating income for the quarter fell to $16.1 million from $19.0 million last year, as operating costs and expenses increased to $249.6 million from $215.3 million a year ago.
New consumer activations grew by 21% and net consumer adds increased by 32%. Churn in the quarter remained flat over the year-ago quarter at 2.3%. ARPU increased to $66 from $62 in last-year quarter.
For the six-month period, earnings were $2.5 million or $0.13 per share, down from $12.6 million or $0.65 per share last year. Revenues increased 10% to $502.8 million from $457.2 million a year ago.
Hughes Communications closed Wednesday's regular trading at $39.62, up $1.56 or 4.10%.
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