DIRECTV 2003 Annual Report Download - page 6

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recently emerged from bankruptcy and we believe there are significant opportunities in
this market. The size of the Latin American market is equal to that of the United States
in terms of total television households.
And while selected countries have
encountered short-term problems, there is
no question that countries like Mexico,
Brazil and Argentina have tremendous
growth potential, with consumers who
have a real passion for television.
Importantly, competing terrestrial pay
television services in the region are
relatively weak, so we see a very bright
future for us in Latin America.
PanAmSat Corporation (NASDAQ: SPOT) is another valuable business at The DIRECTV
Group. With its global fleet of 25 satellites, strong operating margins and large backlog,
PanAmSat is poised to continue generating significant cash flow for many years to come.
Similarly, at Hughes Network Systems (HNS), we have an array of solid businesses with
growth potential. In particular, the expected service launch in 2005 of HNS’ new
Spaceway platform will bring the next generation of satellite broadband services to the
marketplace.
With the emergence of DIRECTV Latin America from bankruptcy, we are now
turning our attention to potential combinations, alliances or other initiatives for
this business. In addition, we are considering strategic alternatives for HNS
and our ownership interest in PanAmSat.
Overall, we have a significant agenda ahead of us, but we start from a position
of strength. 2003 was a year in which the company generated over $10 billion
in revenues and nearly $650 million in cash. We have a healthy balance sheet
and a new management team in place that brings a tremendous wealth of
experience and expertise. Importantly, we also have a great Board of Directors
to provide overall guidance and insight as we move forward.
I expect 2004 to be a fulfilling year for The DIRECTV Group. We see a future of
significant growth opportunities and improved operating performance, and I look forward
to reporting our many successes to you in a year from now.
4
CHAIRMAN OF THE BOARD
The DIRECTV Group, Inc.