EchoStar reports subscriber losses as bankruptcy fears increase

EchoStar's financial fear increases as the company reports subscriber losses across the main areas of its business — wireless, broadband, and pay TV. The company ended Q1 with a net loss of $107.38 million, compared to net income of $253.53m the previous year. 

EchoStar said in its latest financials, “Substantial doubt exists about our ability to continue as a going concern. We do not currently have the necessary cash on hand and/or projected future cash flows to fund fourth quarter operations or the November 2024 debt maturity.”

During an earnings call this week, EchoStar CFO and EVP Paul Orban said that the company needs to pay off $2 billion in maturing debt on November 24. "We do not currently have the necessary cash on hand and/or projected future cash flows to fund fourth quarter operations or the November 2024 debt maturity," he said.

"To address our capital needs, we are in active discussions with funding sources to raise additional capital. We cannot provide assurances that we will be successful in obtaining such new financing necessary for us to have sufficient liquidity. Further, if we are not successful in these endeavors, then capital expenditures to meet future FCC build-out requirements and wireless customer growth initiatives will be adversely affected."