Q3 2019 Earnings Call
Gentlemen, understanding bite and welcome to Echo <unk> earnings Conference call for third quarter 2018 at this time all participants are in listen only mode. After the speakers presentation. There will be a question answer session.
Hello.
Been called President of Hughes honors Johnson cheese strategy on certain president of Echostar satellite services in D. Man, Some general counsel as usual, we buy media to participate in the listen only mode on the call and ask that you not identify participants were there firms in Europe or.
We also do not allow audio recording which we are the <unk>.
Let me now turn this over to being for the Safe Harbor, So it was or.
Thanks, Terry all statements we make during this call other than statement that historical facts constitute forward looking statements that involve known and unknown rent uncertainties and other factors that could cause our actual results to be materially different from historical results and from any future results express or implied by the forward looking statements for less.
Those factors in wrist. Please refer to our annual report on form 10, K. and quarterly report on for 10, Q. filed with the S.C.C. all cautionary statements. We make during the costs should be understood as being applicable to any forward looking statements. We make wherever they up here you should carefully consider the risks described in our reports and should not placed any undue reliance on any forward looking statements.
We assume no responsibility for updating any forward looking statements.
Turn the call over to my <unk>.
Thank you very much team.
Good morning, everyone and welcome to our earnings call.
We certainly have an exciting few months in September we completed the spin off to dish of the B.S.S. business and ancillary assets and liabilities in exchange for dish shares that were them distributed to Echostar shareholders.
In October .
He announced the acquisition appeal is wire Corporation, we're told the global spectrum rights for US band Mobile satellite services.
These transactions support our strategy of being a global conductivity provider for people enterprise and things.
The company continues to deliver solid financial results.
As a management team we continue to focus on operating the business in an efficient manner, while balancing short and long term opportunities.
Turn it over to Pride men, who will talk about the use business organization and then honors old Paulo up with E.S.S.N.S. band, Yeah melts that finally, Dave Rayner will provide the financial summer.
<unk>.
And you might.
A few opening comments on our financial performance in the third quarter.
Avenue was up 4% here to Ya, despite relatively full beams on a Jupiter satellites.
You know today daughters have increased 54% from last year.
In the consumer Internet business. We ended you three but didn't do a couple of approximately a million 437000, hughesnet subscribers net dad's of approximately 22000 into quota.
I'd International consumer base.
Two two approximately 192000 subscribers.
Excuse me, we also announced the launch a five consumer service in Mexico, which began in October one.
This new service along with US services in six countries in Central and South America.
Continue to provide.
Internationally.
I'd give it a three satellite is under construction and we were planning for launching Tony Tony One.
The satellites will add significant additional capacity as well as maintained a high quality and competitiveness stuff I suppose in <unk> in North and South America.
It to leverage the latest satellite and systems technology to lower costs, but big and enable us to meet that <unk> customers increasing usage demands.
You know international business Hughes, India.
Learning network for 500 schools in Northern India.
Additionally, using <unk> significantly expand the scope of their service agreements, but just stayed bag of India as well, so Punjab National Bank.
That's the first operator in India to receive a flight and maritime connectivity license Indian team now has launched maritime mobility sentences and continues to explore multiple opportunities Indio friend.
Hughes Europe business gain significant contract extensions or do clients. One is a large gas station operators and the other large retailers both to the operations across Europe .
In Mexico, collaborating with telecom, a part of the Secretary of communications in transportation.
Deployed Hughes expressed by five <unk>.
Up to 4000 locations throughout the country.
This collaboration he's express wife, I high speed Internet service, but complement telecoms rural telephony ages existing service offerings.
In Columbia, we announced an additional five to ship with Facebook to launch by five hot spots.
Also access networks has chosen to offer Hughes satellite services to enterprise customers threw up Columbia.
The Jupiter system continues to be the de facto standard for broadband operators around the world with additional that'd be guided operators selecting the Jupiter system for their satellite broadband operations.
Optus is using the Jupiter system to deliver the next generation of satellite services throughout Australia, New Zealand.
Delivering a range of services, including three G. unfold you send it back all.
Satellite news gathering and matter time.
As you. Your telecom has also selected the Jupiter system as they launch satellite Internet services for citizens throughout as easy.
In addition, we've signed contracts for Jupiter systems that signal T.V. in the Philippines, and inter sat in Kenya.
But still a small component of Hughes defense businesses experience rapid growth. This year two wins with Boeing on the next generation view D. and D.N. satellite <unk>.
Subcontract with the U.S. Army for management Chauffeur's narrow band satellite network and most recently a contract with Gendler Comics.
Airborne satellite communications upgrade to the U.S. armies kriegel unmanned aerial vehicles fleet.
Our government into Enterprise group has recently been selected by the U.S. postal services to provide a v. sat network connecting postal service facilities across the United States in Puerto Rico.
Expect to see continue daughter's in revenue growth in these business segments going into 2020.
We're making good progress on the completion of two previously announced joint ventures that'll help us to expand our business.
The first is with the asset to expand our ability to provide internet services and enterprise solutions in Brazil.
Yeah, I sat will contribute a satellite communications business and the Brazilian payload or not he had three 420% ownership in our existing Brazilian subsidiary, we expect this to be completed this year.
The second is an agreement is back here tell in India. This will help us bring greater scale, the operational efficiency and market reach to provide Indian customers with broadband solutions for enterprise and government networks.
Party will contribute as we said business to our existing Indian subsidy for 33% stake.
Both j. visa subject regulatory approvals, which offending.
I work on the <unk> one web network is continuing at full pace, where ship. The first few gateways and the technical performance is excellent.
As you can see we I don't know very strong quarter and I'm looking forward to closing out another successfully and setting the stage for even greater achievements in the future.
Turn it over to <unk>.
Thanks problem good morning.
Third quarter E.S.S., continuing operations revenue was $4 million compared to $7 million last year. The decline primarily being the result of lower satellite capacity lease revenues from third parties.
Although the F.S.S. environment remains difficult.
You're actively exploring opportunities to lease our ex excess capacity.
On the S.P.N. front, we announced in October our acquisition of Healios wire.
A satellite unable to I.R.T. conductivity company headquartered in Canada.
Total consideration of approximately $26 million.
Acquisition of Healios Healios is Australian subsidiary, Syria, and global which holds global spectrum rights for S. band Mobile satellite services.
We have additionally contracted for the construction and launch of our first flight of Leo satellites at a cost of less than $10 million.
We acquired these companies to our subsidiary Echostar Global true, which we intend to develop SBM platforms that we expect will reduce the cost of satellite delivered I.O.T. services.
Looting machine to machine communications public protection, and disaster relief and other and and services.
He also continue to make good progress with Echostar immobile.
We are in discussions with several new distribution partners and we continue to see a lot of enthusiasm for our new terminal Road map.
A new Hughes 4500, Omnidirectional terminal is officially launching at European utility week later this month.
We also have a hybrid M.S.S. terrestrial version of the 4500 terminal in the works it should be available need 2020.
When you're pushing forward with our plans to develop new technologies that will enable us to deliver devices that will generally increase the potential Jack addressable market for global satellite delivered into M., an I.R.T. services.
Finally or longer term strategic goal remains to fully integrate the S.N. satellite services into five G. networks.
We also continued to explore ways to integrate are complementary ground component authorizations into these and other developments.
Oh, how turn it over to Dave.
Thank you wanders.
As Mike mentioned on September 10th we complete the spin off of B.S.S. business dish.
As a result of B.S.S. business, excluding the real estate. There was included in the transaction has been presented as discontinued operations in our current financial results.
Just continued operations disclosure are subject to very specific gap rules in as a result, the financial results are the impacted operations are disclosed in a single line net of tax on our piano.
We also present E.P.S. for both continuing in discontinued operations.
Prior numbers are presented in the same way.
We provide a summary of historical continuing operation results on our website and and it's an exhibit two are 10 q.
[laughter] like last year, I will be speaking to our adjusted EBITDA measurement. The measurement excludes for me, but a certain non recurring items as well as gains and losses on our investments and unrealized gains in lost some foreign exchange.
More details are in the gap to non gap reconciliation in our earnings release.
We believe that adjusted even a more closely represents our operating efficiency and financial performance.
Before I get into the financial results I like to address the charge, we booked in our Hughes segment during the third quarter related to a license fee dispute with the government of India.
You are cruel $21 million impacted or are generally tremendous rate of expense by $7 million in interest suspense net of capitalize by $14 million.
[noise] there was a corresponding offset and net net income attributable to non controlling interest of $3 million.
[noise] this fee dispute dates back over a decade, where the Indian department of telecommunications.
Has contended that noncore revenue should be included in the revenue base of Indian Telecom companies, which lobbies are charged under a revenue sharing system of license fees.
The Supreme Court of India ruled recently in favor of the department of Telecom, finding the telecom companies must pay many years of charges plus penalties and interest.
The entire Indian telecom industry is affected by this ruling in an aggregate amount recorded to exceed $13 billion.
As a result, the government has set up a cabinet level committee to examine how to alleviate the impact this ruling and other economic factors.
We expect that action by the department of telecommunications to enforce the Supreme Court ruling will await the outcome of this committee's work.
[noise], none of the financial results.
Consolidated revenue third quarter was $472 million, a growth or 4% or the same period last year.
Driven by growth in our he's segment offset partially by lower E.S.S. revenue.
Consolidated adjusted EBITDA in the third quarter was $148 million compared to $154 million last year.
Without the Indian fee dispute adjusted EBITDA would've been $152 million during the quarter.
Our net loss from continuing operations was $23 million in Q3, the loss increasing by $20 million from last year.
Change was primarily the result of higher unrealized losses on foreign currency higher appreciation expense and increase equity losses upon consolidated affiliates, partially offset by higher gains on investments.
Net interest expense, which was relatively flat Europe , a year was impacted by $14 million from the Indian fee dispute, which offset savings associated primarily where the retirement of our senior secured notes in June .
[noise] capital expenditures in the quarter were $95 million compared to $167 million in Q3 last year. The decrease was primarily due to lower spend on construction an infrastructure associated with the satellites and lower C.B.E. associated with our consumer business.
Cash flow defined is adjusted EBITDA minus cap X. was $53 million sharing the quarter.
Turning of the segments Hughes revenue was cute.
Two three was $464 million, a 4% increase your every year driven primarily by growth in whose consumer service and enterprise a mobile sat hardware sales upset partially by in or enterprise services [noise].
Uses adjusted easy, but on Q3 was $169 million he 1% increase over Q3 last year, primarily from the higher revenue noted above and partially offset by higher marketing and promotional costs associated with are concerned business.
Higher net G.N.A. expense associated with the government of.
India fetus viewed and losses in equity and unconsolidated that entities.
E.S.S. revenue Q3 was $4 million down $3 million from last year, primarily due to lower satellite fancy lease revenue associated with third parties.
Adjusted EBITDA was 2 million in Q3 compared to 5 million last year, primarily due to the lower revenue.
[noise] adjusted even in the corporate and other segment in Q3 was a loss of $23 million compared or loss of $18 million and Q3 last year.
The change being primarily driven by higher Gina expenses associated with strategic transactions and higher losses and equity in earnings of affiliates.
We ended a quarter with $2.5 billion, a catcher marketable securities and negative net debt approximate hundred and 58 million.
We are continuing to assess our capital structure and evaluate opportunities to foster both organic and inorganic growth.
With that let me turn it back over to my.
Hi can Dave <unk>.
As you have heard from our executives to.
It was a very productive corridor.
I'm very proud to be part of this executive team and all of our race and accomplishments.
Our focus continues to be a global player providing bandwidth networks support infrastructure and secure services across a wide spectrum of opportunities.
Let me down turn it over to the operator, so we can start a question and answer session.
Absolutely.
Sure.
<unk>.
So you've got your question fast.
Thanks Bye-bye.
[noise] [noise] your first class so.
<unk> Princess from Raymond.
Okay.
Thanks, Good morning, guys.
Cornering right.
A couple of questions wanted just to make sure I understand the the N.D.F.C. first is this stuff palsy I know, it's being looked at price if the government can do something with it but does this represent the full amount both the the G.N.A. and the answer six bass based on the current price or would there be a future adjustment as well.
Right now we we have accrued the full amount we had a slight amount of crude actually for many many years, but the additional charges that we booked this quarter or put a total amount there's a possibility that interests could grow over time.
And so we'll assess sat on a quarter by quarter basis, depending on how things progress with the Indian government and how they're going to deal with us.
And then you mentioned, how there was the 7 million at Hughes, but was the 3 million for the offset.
She is I guess, a better way of asking the question is 169 million of either.
Reported at Hughes shall we consider that would events for a million hire 7 million hiring cues without being N.D. item.
It would've been $4 million higher so there's $7 million plus the $14 million of interest and then the minority interests component of that is about 3 million.
But the but the but that would have only been affected by the 7 million and a negative for 14 with being there.
Correct.
Right, but but both items to seven and the minus four sorry minus three are <unk> within use.
Those are yeah. This entire thing it was or then Hughes the Indian subsidiaries are all Hughes subsidiaries.
Okay.
And then you mentioned.
Others mentioned, the Healios transaction 26 million total consideration.
That construction for layers of less than 10 million I know, we get a lot of questions from investors trying to focus on your your capital expenditures on your outlook.
Capital expenditures, how should we think about.
The total costs of Jupiter three that you've already spent and that's remaining to be sad, but that other kind of projects that are out there versus what might be maybe more normal ongoing cat backs.
Yeah, I mean, <unk> certainly you know and honors can can address you know plans are around the s. band strategy, but do we do have still several hundred million dollars left to spend on Jupiter.
You know I I.
<unk>, that's the only major capital expenditure item that we currently are committed to we obviously still have ongoing cap acts for C.B.E., a which at this point time is principally in South America, where we continue to grow the consumer business.
You know there's capital associated with certain enterprise projects, which are all you know driven by contracted revenue so success base camp X.
And then you know as I said to my comments you know, we're going to continue to assess the use of capital or the cash on the balance sheet and look for ways to grow organically impossible inorganically.
But right now I mean, we we don't have huge commitments outside of Jupiter rate.
And Jupiter's rate with a 2021 law should be mostly spent I would guess by the time to get through 2020.
Yeah.
Yeah to to a great extent I mean, obviously, there's some backloaded cat packs on that and and certainly the launch cost starts coming in there <unk>.
<unk>.
Okay.
Can you updates a little bit on on the S. bad or what Helio springs to the table and the Leo construction.
Well healios or or more accurately theory on is another piece of the mosaic I think you know between Sats asked band G.O. network and our affiliate dish networks.
Band networks over North America.
We we already hold pseudo positions of priority and have established businesses.
What what Syria on brings to the table is the ability to filling the gaps to provide what could be a is a global solution in the band.
So our initial focus will be too bring their filings into use.
With this first flight of <unk>.
And and then assess our strategy going forward, depending upon the opportunity. So we are in discussions with a number of potential customers about putting together a network, which would present global coverage and depending upon the pace of those discussions and the levels of commitment.
That will regulate sort of our willingness to move forward with a plan to more fully populate the network.
Great. Thank you.
Hey next question.
<unk>.
Hi, Thanks.
Questions, if I could first falling the new structure for the company poster transaction like yeah.
Can you describe strategically an operation where he where your parents may cross again with dish, whether it's in investing together.
Yep pursuing things like I as team just a sense of how to think about that relationship on to go forward basis.
<unk>.
The opportunity for S. band more globally.
There are significant investment that need to take place.
<unk> executed upon that vision. Thanks.
Okay. This is Mike I'll take the first question first of all with the business transaction.
We really are highly independent we don't.
By any <unk> satellites anymore all of the associated technology has been transfer back the dish. They are a vendor of ours now which is they're flying are Jupiter satellites and.
They will continue to support us in the future from an operational standpoint, I believe you will cost you know you'll see us certainly be continue to look at asked band partnerships as as a <unk> alluded to we hope to be a big vendor.
As we move forward you know as David build out networks and they tax certain segments.
I think use Echo star will continue to be.
Preferred vendor in areas that we do a great job.
And I think we you know with this transaction it gives us.
Certainly some independence that will help us look at other opportunities.
Be viewed more independent so as to the second question all I've got up on her.
Well as as far as obligations going forward.
The the Syrian filing which is through the Australian administration was modified slightly earlier this year.
And we we will have an obligation to bring that filing into use prior to April 2021.
And we've already embarked and our well down the road on a plan.
To perform that task. So we we will be standing up a network and conducting tests across the network probably by late 2020, and certainly by the first quarter of 2021.
Thank you.
<unk>.
Mm.
They also have cats.
Yeah.
Thanks, I just wanted to follow up with a question on the consumer part of the business.
Maybe this is technical in terms of how your addressing net ads.
With a lot of these international opportunities that are done.
You know why fight Hot spots war call centres and those types of applications.
I'm not I'm not sure I understand your question Yeah, if you're asking are we counting the wife my hot spots in our consumer.
Subscriber account to the answer at this point is no. We've had some conversations that that part of the business grows that maybe we should do some sort of an equivalent calculation, but at this point in time the subscribers that we report.
Our individual consumer and and as well small medium.
Enterprise customers.
If the if your question was something other than that Chris can you restate it.
No that was it I I just know that you know one of the concepts you've been promoting are these you know locations, where you have people that can come in and use the wife I on a part time basis and it has more of an enterprise flavor to it than an individual consumer.
And how you would account for that either falling into the enterprise pocket or does it call into the consumer pocket.
I I think from a revenue standpoint, where we will counted as consumer revenue.
It's indirect consume mode, where it's still consumer.
But as I said, it's not currently in our subscriber account, but it isn't a subscriber revenue or the consumer revenue or services revenue.
Understand and it looks like just the.
The equipment revenues were apparently strongly that's where I think around 15 or 16% and obviously.
C.P. has been soft with the lower gross ads can you give us a sense of where the growth is coming on the equipment side.
Yeah.
Yeah I.
I think we had significantly.
Increased revenues in the enterprise sector one <unk>.
<unk> continue as we start delivering production gateways.
Who's going to continue to seize Avenue grew up in the in that sector. We've also be nice I mentioned in my.
Comments.
Via selling stupid to platforms, all over the world, which again shows up as hardware avenues in a in a in <unk>, but that pretty much accounts for all increases.
I understand profits to the Jupiter system as implemented in the U.S. is K.A. based but obviously for a lot of these places internationally, where you've sold Jupiter. There is no k. capacity in your talk about.
You know that those infrastructure sales are obviously K.U. base, but how does that platform migrate if and when k. capacity does become available in those areas.
Yeah, that's a pretty straightforward if you look at the total.
System capability in a Jupiter Black school most of it is independent of the out of frequency that you use so right at the end at the age of the <unk> I intermediate frequency I have frequency, we either convert to K.U.R.T.V., depending on the requirement of that particular.
Estimate, but all the processing all of the software and all the interfaces with the.
Textual networks is all independent of what our frequency we used to play you know what's that like for using the men book.
Understand and a similar technical question on has fan.
You, how right if you're up and dish in the U.S. four s. band G.O.
The Healios wire a filing is for Leo.
Can you explain you know how does it frequencies can be integrated and are they co join in terms of where it are located on E.S. ban portion of the spectrum.
Well they they they are the same frequencies. So the frequencies are authorized at the I.T.U. for both Geo stationary and non Geo stationary systems.
And that's where this was quite complementary and and between our existing filings, which Broadway you know.
Considering the the dish holdings in the band and then sat holdings in the band which are through multiple administration.
Adding this Australian filing to the portfolio a gives us the opportunity to to build out a network in the s. bands across pretty much the full allocated spectrum other than a within Europe , a piece, which is allocated to.
M.R. sat and once again you know S. band is is authorized at the I.T.U. level, there's still a country by country.
Exercise that needs to be undertaken both with regards to how the S. band is authorized in each country and then obviously gaining access to that country or being licensed by it for deployment of the spectrum in a particular country.
Got it and.
For the.
Deployment of those services is that done.
Again, using the E.M.L. subsidiary will lead that cause and second part of the question I'm, assuming that that Leo satellites that you mentioned were satellite that were previously order by Healios wire do you have some sort of a strategy around building out.
Larger constellation and Leo or.
A hybrid Leo G.O.
[noise] well if I if I can answer your first question as a as I mentioned in my script. The we've formed a new company called Echostar global which will probably be the entity through which we develop the capabilities of this new network.
How that integrates with Echostar immobile, who obviously has a headstart.
In developing G.O. based services within the European Union and the surrounding area, how we we Mel those together or use our existing assets for further development across this new N.G.S. So platform has yet to be decided we're we're looking at the network as an.
Integrated network. So many of the devices that we're contemplating developing more or indeed, developing will look in differently add either a G.O. asset in the band or an N.G.S. so asset in the band and and that's the whole point is we have the opportunity here to create.
Working capability with a lot more bandwidth that and available by the existing global networks that currently exist.
As far as the satellites themselves.
We had been in discussion with the former owners Healios wire for quite some time and the transaction itself had.
Bull phases, and as we moved through the Phase is we undertook discussions with the vendor, which we selected to construct and we'll launch next year the satellites, which we have design. So they were not previously under contract by Healios wire worse theory on those are generally.
And Echostar procurement.
Yeah.
Oh very good alright, well, thank you gentlemen.
Okay.
Once again artists off a question. Please press tied to the number one on your telephone keypad again that is tied to the number one telephone keypad.
Yeah.
Yeah, they fall off faster from wreck Frances free money.
Yeah.
Up on one of Christmas questions.
As you mentioned I'll use the the full spectrum in the S. band is that still I'm trying to member of the uplink endowed links maybe like 45 megahertz up and 30 megahertz now just try to scale up her I mean megahertz or or in that band and then remind people, that's where it's kind of talking in the two gig range I think.
Right.
Yeah. It's all it's all referred to as to gigahertz and and you have it correct. It's it's 40 and change in the aggregate up and 30 down there are three I.T.U. regions and the band is characterized slightly different.
Across the different regions.
But broadly speaking those are the metrics.
And whereas that frequency status as far as getting put into eco system as far as into infrastructure or devices. Obviously, you guys would be working on that I kind of where are we in the in the baseball game of of getting that spectra, maybe put into infrared devices.
Well the those are conversations that have been running for quite some time certainly are acquisition Echo star immobile back at the end of 2013.
We then started having conversations with vendors about getting the band I incorporated into more widely distributed devices.
We've also developed a number of devices ourselves, but the the physical attributes of the band are quite attractive and they utilize and omni directional antenna, which eliminates the the pointing concern allows for a very small antenna and a low power transceiver.
To close the links so the application sat here, especially as five year olds out.
It is is a large opportunity for us.
Yeah, obviously, it's a different band in the sea band, but a lot of discussion in the U.S. about how much see bands is worth it and more like four gig raise with black white or basket you guys have got a lower frequency with.
A lot of frequency as well so just trying to think through as we try and put that into some modernization efforts. So.
Testing spectrum here.
We think so.
Great. Thank you for follow up.
I also have across from <unk> <unk>.
Mm.
Hey, guys.
Thanks for your time, just a couple quick questions relating to ask band.
It was reported that you bought rights in Mexico.
For approximately 150 million south I kind of put together all the investments you all have done in the <expletive> band.
Yeah, I got 500 to 600 million <unk>, when we think about the related infrastructure span couldn't kind of comment on that <unk> the way you're thinking number one.
And then second question when you talk about.
Equipment or ground station equipment being compatible with Leo G., you're also anticipate the equipment is compatible with ground you know complimentary ground.
Use close isn't as well in terms of leveraging the terrestrial apart or is that an entirely different.
Kind of business approach down the red Thank you.
Okay, well to try and take your question sequentially as far as Mexico. We are currently A.M.S.S. licensee in Mexico.
And recently participated in a proceeding.
The Mexican authorities held regarding the auctioning of.
Until you reach rest real rights to those very same frequencies.
And that is the activity I believe you were referring to so we are currently in M.S.S. licensee in Mexico, and also mobile terrestrial mobile licensee for the same frequencies in Mexico.
But our investment in that license in the auction was nowhere near the magnitude of what you refer to it was single digit millions I believe yeah, I I think what the number you're referring to as 150 million was 150 million pesos.
[laughter].
So thanks clarification.
Yeah and in in so far as you know the ultimate development of this band the the Healios wire acquisition gives us.
Sort of now a full coverage from an M.S.S. standpoint.
How that M.S.
Authorization, maybe licensed in future for a complementary terrestrial use.
Is is certainly something that is an opportunity for us, but it's not the focus of the acquisition for our current ambitions.
I think right now it's more the opportunity to to develop what would be as a satellite based network utilizing both G.O.N. non G.O. assets.
Create a global footprint across which multiple devices weather.
Fixed or immobile can gain access.
And and just as a follow up to that question in terms of you know the S. banned in North America by your partner.
<unk>, there that that could be part of some slice operation, where you could gain access to a slice of that network for any kind of worldwide I have t. ambitions.
That is certainly within the scope of our discussions.
Thank you.
We also have a question craft coffee.
Yeah.
Okay.
Thanks, just wanted to clarify from earlier in the conference call you have not yet completed the Awsat J.V. for Brazil is that correct.
That is correct.
Yeah. So there we hope for completed before the end of the.
Great and so have you mentioned previously how many subs all Ya three gives you access to in the Brazilian market and you know are you currently constrained at all with your existing capacity.
Well some of the Hawk beans, you know non stop our little and ER zeal offending of just like the hard beams in the United States.
Up and obviously I three things that additional space segment.
For us in Brazil, and <unk>. This congestion in some of the hard being so from that perspective, it's it out in addition, I've got three.
Also <unk>, Brazil that are the existing payloads didn't cover so we'd be able to address markets in those areas.
And have you given this sorta order of magnitude number a subject expect to add.
No we I don't think we've done that.
You want to [noise].
<unk>.
[laughter], Oh, I I'm, just asking thanks guys.
Right.
[noise], we also have <unk>.
Caroline is okay.
Hey, guys I have that two questions. The first is I'm just wondering if you could comment on whether you think this piece of that adds is on sustainable for the next you quarters or so and then my second question was just is there anything to report positive or negative in terms of.
The our pool environment.
The last relative to previous quarters.
Well I'm, taking a second question <unk>, we've seen our our full in the United States go up slowly, but it's it's definitely going the right direction.
So I don't think we actually put out the numbers, but the friend is into into positive direction.
In terms of sustaining the net dance I don't think we we we we give all those kind of guidance right at this stage, but and so I'll have to pass on that.
But I think the trends that you've seen in terms of the net ads you know, we'll continue with at least in the near term until we have Jupiter Threeq Apache back in the U.S.
That the U.S. net ads will be relatively flat or I should say the total so obviously flat maybe.
Pick up a little bit, but not much growth in the west and the growth that we will show will be coming from the international market.
That's very helpful. Thank you.
No for their classes.
Semi proceed.
And we're not running to conclude the call. So thank you everybody for call them <unk>.
[noise] play different jobs on the.
Conference.
Join.
[noise] [noise].
Yeah.
Oh.