Financial Roundup

11 August 2005

USA (calendar Q2)

  • EchoStar Communications
        Net income at America's second largest satellite broadcaster, reached $855.5 million (€693m; £479m), including a $593m tax benefit, up from $85.3m a year earlier.
       Average revenue per user was $58.46, up five per cent from 2004, while its 225,000 net subscriber additions were 33% lower than a year ago.
       Commented Sanford Bernstein analyst Craig Moffett: "The satellite and cable sectors have been in the grip of fears that price competition would eventually erode profitability. Yet, quarter after quarter, we see results that suggest that is not the case and that pricing continues to increase solidly."

    Global (calendar Q2)
  • Clear Channel Communications
        The largest US radio group reported net income of $220.7 million (€179m; £124m), down from $253.8m a year earlier. The fall is attributable to the company's 'less-is-more' strategy, introduced at the beginning of the year to combat sharp audience declines - a malaise affecting the US radio business as a whole.
        In a bid to reverse this trend, Clear Channel cut commercial airtime by 27% in Q2, triggering a 7% fall in revenues to $932m.
       "While still early, we are already seeing proof that we are providing a better listening experience and more effective environment for advertisers," said chief executive Mark Mays.

    UK/USA (calendar Q2)
  • NTL
       The lossmaking US-owned cable group, whose operations centre on the UK, reported overall revenues down 2.3% to £482.5 million ($861m; €697m).
        A 2.5% revenue increase at the consumer division was negated by a 16.5% fall at the business division.
       On the plus side, NTL now has 1.56 million broadband subscribers - up 112,000 from the end of last year and accounting for 48% of all customers.
       Broadband growth stands at 42% year-on-year, and a service announced Tuesday offering faster speeds of up to 10Mb, is expected to drive significant further increases.
       The number of 'triple-play' customers who subscribe to all three services - cable TV, broadband and telephony - now stands at 777,500, up from 663,500 a year ago and accounting for a greater proportion of the total subscriber base, up from 21.5% to 23.8%.

    Data sourced from multiple origins; additional content by WARC staff