Hughes Electronics Corporation, the world's leading provider of digital television entertainment, broadband services, satellite-based private business networks, and global video and data broadcasting, today reported fourth quarter 2001 revenues increased 10.8% to $2,280.6 million, compared with $2,059.0 million in the fourth quarter of 2000.

EBITDA(1) for the quarter was $118.2 million and EBITDA margin(1) was 5.2%, compared with the fourth quarter of 2000 EBITDA of $153.8 million and EBITDA margin of 7.5%.

"I am pleased to report that in the fourth quarter we met or exceeded all of our key financial commitments while making excellent progress toward our goal of improving operational performance," said Jack A. Shaw, Hughes' president and chief executive officer.

"Our DirecTV U.S. business substantially exceeded expectations by adding 405,000 net new subscribers in the quarter. Additionally, we had solid revenue growth in the quarter driven by continued strong demand for DirecTV services in both the United States and Latin America, as well as increased sales of DirecTV receivers and Direcway systems at Hughes Network Systems."

Shaw continued, "EBITDA increased in each of our key businesses driven by operational improvements including aggressive cost reductions, a reduced workforce and lower customer churn at our DirecTV businesses.

"These improvements were partially offset by the losses from our new DirecTV DSL(TM) service, which were not included in our 2000 results, and a $29 million charge at DirecTV Latin America due to the devaluation of the Argentinean peso."

Also impacting the EBITDA change were one-time favorable adjustments in the fourth quarter of 2000 for corporate expenditures primarily related to pension and other employee costs.

Hughes had a fourth quarter 2001 net loss of $132.6 million compared to net income of $1,057.8 million in the same period of 2000. The change was primarily due to the gain on the sale of Hughes' satellite manufacturing businesses in the fourth quarter of 2000, increased net interest expense, and the lower EBITDA.

These reductions were partially offset by a $42 million tax benefit resulting from losses previously booked on Hughes' investment in Motient Corporation.

FULL-YEAR Financial review