Hughes Greets Murdoch With Buoyant Q1 Results

16 April 2003

After investors gave a cool reception to his acquisition of US satellite operator Hughes Electronics, Rupert Murdoch may now feel vindicated after the firm posted better-than-expected results for the first quarter.

Hughes, owner of pay-TV platform DirecTV, narrowed Q1 losses to $50.9 million (€47.2m; £32.4m), down from $837.7m last year (when it recorded a $681.3m goodwill write-down and a $29m charge). Revenues jumped 10% to $2.23bn.

For the first time, separate results were given for its US DirecTV service (as opposed to its siblings in Latin America). This added 275,000 new subscribers in Q1, raising net income to $47.3m.

Last week Murdoch finally landed DirecTV after years of trying, though the terms of the deal did not go down well on the markets [WAMN: 11-Apr-03].

Data sourced from: The Wall Street Journal Online; additional content by WARC staff