Dish Network 2003 Annual Report Download - page 2

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9601 S. Meridian Blvd. • Englewood, Colorado 80112 • Tel: (303) 723-1000 • Fax: (303) 723-1999
April 5, 2004
To our Shareholders and Bondholders,
It is my pleasure to report that EchoStar Communications Corporation experienced another year
of significant growth in 2003. During the year, our DISH Network crossed the 9 million subscriber
milestone and we now offer local channels by satellite in more than 100 cities. We added 1.245 million
subscribers during the year, finishing with 9.425 million customers.
Operationally, we launched our ninth satellite to enhance the variety of programming we can
offer to consumers. The satellite, EchoStar IX, also carries technology designed to promote EchoStar’s
exploration of broadband services for possible commercial introduction in the future. Our capacity to
provide additional channels and services will further increase with our lease agreements signed during
2003 for two satellites that will be constructed by SES Americom. We currently expect these satellites to
launch during the second half of 2004 and the first half of 2005.
In 2003, EchoStar released more new products into the market than at any other time in its
history. Several of those products were designed to take advantage of the growing demand for high
definition television and retain our position as the leader in digital video recorder (DVR) technology. For
example, EchoStar began marketing a high definition system, complete with receiver, antenna, and the
customer’s choice of a 34-inch or 40-inch HD television monitor. The DISH 322 receiver allows
customers to watch two different channels in two rooms, as does the new DISH Player-DVR 522, which
also offers the ability to record, reverse, play back, fast forward and pause live TV.
From a financial perspective, our company achieved $5.7 billion in revenue, earnings of $225
million (or $0.46 per share) and $254 million in free cash flow. We were also active in the capital markets
during 2003, issuing $2.5 billion of high-yield bonds at favorable interest rates and retiring $1.8 billion of
outstanding debt during the year. These transactions will significantly reduce our interest costs over time.
In other 2003 developments, EchoStar continued to pursue broadband options by signing
agreements with DSL partners SBC Communications, Qwest and Earthlink. The SBC and Qwest
partnerships laid the groundwork for additional distribution channels on sales of our video packages.
Going forward, EchoStar plans to continue to address consumer demand in the areas of
international, interactive, digital video recording and high definition television, and to develop
technological features that will maintain our position as the provider with the best value and the most
exciting products in the pay-TV industry. On behalf of EchoStar’s 15,000 employees, thank you for your
continued support.
Sincerely,
Charles W. Ergen
Chairman and Chief Executive Officer