2023 is shaping up to be a pivotal year for EchoStar, with a planned Q2 launch of the Jupiter-3 satellite that was ordered six years ago.  Following two months of in-orbit testing, Jupiter-3 should enter service in Q3 and reverse the steady loss of subscribers, which have fallen ~23% from a peak of 1.58 million subs in 3Q20. It also appears increasingly likely that EchoStar will put its ample cash reserves to use in 2023, as the company’s 10K disclosed contemplation of “material capex” to make “significant” acquisitions.  Notably, new satellites do not appear to be on the capex agenda, as management indicated it is evaluating “whether and to what extent” to replace its satellite fleet.
Headcount reduction of 8% as Hughes tightens up amid an increasingly competitive environment.
Consumer sub losses were 57,000 in the quarter and a record 234,000 on a full-year basis. HughesNet Fusion mitigating but not reversing the damage.
Quarterly Hughes revenues were flat y/y as robust equipment sales continue to offset service declines.
Capex down 11.5% in Q4 and 25% on a full-year basis, reflecting a slowdown in Jupiter-3 costs and reduced spending on customer premise equipment.
The enterprise segment notched a sixth consecutive quarter of double-digit growth, up ~16% y/y on the strength of equipment sales to OneWeb and other customers.
Jupiter-3 is tracking for a 2Q23 launch, with service starting the following quarter.
Constellation order of 28 IoT satellites from Astro Digital gives long-awaited backbone to EchoStar's S-band connectivity plans.