EBITDA1 for the quarter was $113.2 million and EBITDA margin1 was 6.0%, compared to EBITDA of $152.7 million and EBITDA margin of 9.0% in the first quarter of 2000.
Our DIRECTV U.S. business continues to be our primary growth driver, explained Michael T. Smith, HUGHES chairman and chief executive officer. Despite uncertain economic conditions, we activated a record number of DIRECTV U.S. customers-on a gross basis-for the 14th consecutive quarter.
Smith continued, As a result, DIRECTV generated more than $1.3 billion in revenues in the quarter, an increase of 25% over the first quarter of 2000, and $50 million in EBITDA, a 61% improvement over the same period last year. DIRECTV Latin America also contributed to our growth with $165 million in revenues, a 45% increase over the previous year’s first quarter.
Smith added that the improved DIRECTV U.S. EBITDA in the quarter was more than offset by changes in sales and sales-type leases of PanAmSat satellite transponders, increased investment in Hughes Network Systems’ (HNS) DirecPC? broadband business, and fewer sales of HNS’ DIRECTV receiving systems.
Given the slowing economy, we believe it’s prudent to adopt a cautious approach to growth at DIRECTV, while focusing even more on maximizing our returns, Smith continued. As such, we will manage our subscriber acquisition costs (SAC) to ensure we maintain or increase our return on investment, redouble our efforts to minimize churn, and generate increasing EBITDA.
HUGHES had a first quarter 2001 net loss of $105.3 million, compared to a net loss of $81.9 million in the same period of 2000. The decline was due to the reduced EBITDA and increased depreciation expense associated with PanAmSat’s larger satellite fleet and the increased number of leased DIRECTV set-top boxes in Latin America, partially offset by the elimination of operating losses and one-time after-tax charges related to the discontinued DIRECTV Japan business.
