DirecTV parent predicts growth in 2002

LONDON - Hughes Electronics, parent company of the US satelliite TV operator DirecTV which is being taken over by its smaller rival EchoStar, said it expects 2002 revenues to rise more than 8%, based on the performance of DirecTV.

Hughes, a division of General Motors, said it expects 2002 revenues to pass the £6.2bn mark against its forecast 2001 revenues of £5.8bn.



It expects Ebitda to be between £520m and £600m, a 50%-90% increase on 2001.



DirecTV, which is about to undergo an anti-trust inquiry into its takeover by smaller rival EchoStar, has 10m subscribers and hopes to see 2002 revenues rise 7%-9% to £4.2bn from its 2001 forecast of between £3.8bn and £3.9bn.



A combined DirecTV-EchoStar company would have 16.7m customers and would be one of the largest pay-TV companies in the world.



US competition authorities, however, could scupper the deal because it would limit the choice of pay-TV platforms for US consumers in rural areas where cable networks do not pass.



Shares in Hughes, which trades on the New York Stock Exchange as GM tracking stock, fell 0.2% to $14.35 yesterday.



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