| Schedule of total revenue, capital expenditures and EBITDA by operating segments |
| | | | | | | | | For the Three Months Ended March 31, | Hughes | | 2025 | | 2024 | | | | (In thousands) | Revenue | | | | | | | Revenue from external customers: | | | | | | | Service revenue | | $ | 277,701 | | $ | 319,504 | Equipment sales and other revenue | | | 88,363 | | | 60,500 | Total Revenue | | | 366,064 | | | 380,004 | | | | | | | | Operating Expenses | | | | | | | Cost of services: | | | | | | | Connectivity services (1) | | | 96,752 | | | 98,380 | Other (2) | | | 62,317 | | | 72,070 | Total cost of services | | | 159,069 | | | 170,450 | | | | | | | | Cost of sales - equipment and other | | | 81,586 | | | 56,380 | Selling, general and administrative expenses: | | | | | | | Subscriber acquisition costs | | | 44,519 | | | 49,294 | General and administrative expenses | | | 37,276 | | | 54,358 | Total selling, general and administrative expenses | | | 81,795 | | | 103,652 | | | | | | | | OIBDA (3) | | | 43,614 | | | 49,522 | | | | | | | | Depreciation and amortization | | | 83,801 | | | 93,782 | Total costs and expenses | | | 406,251 | | | 424,264 | | | | | | | | Operating income (loss) | | $ | (40,187) | | $ | (44,260) | | | | | | | | Unallocated Amounts | | | | | | | Interest income | | | 2,500 | | | 17,015 | Interest expense, net of amounts capitalized | | | (25,659) | | | (27,349) | Other, net | | | 1,750 | | | (1,424) | Total other income (expense) | | | (21,409) | | | (11,758) | | | | | | | | Income (loss) before income taxes | | | (61,596) | | | (56,018) | Income tax (provision) benefit, net | | | 12,556 | | | 5,752 | Net income (loss) | | $ | (49,040) | | $ | (50,266) | | | | | | | | Purchases of property and equipment, net of refunds | | $ | (31,648) | | $ | (68,526) |
| (1) | “Connectivity services” is the cost to deliver our services and products to customers, which includes, among other things, satellite and transmission and other related costs. |
| (2) | “Other” primarily consists of variable costs including call center, manufacturing, dealer incentive, bad debt, billing and other variable costs, as well as costs to retain our subscribers. |
| (3) | OIBDA is a non-GAAP measure and does not purport to be an alternative to operating income (loss) as a measure of operating performance. We believe this measure is useful to management, investors and other users of our financial information in evaluating operating profitability on a more variable cost basis as it excludes depreciation and amortization expenses related primarily to capital expenditures and acquisitions, as well as in evaluating operating performance in relation to our competitors. |
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