Pegasus Clips Its Wings
Pegasus Communications (PGTV Quote) is saying "whoa" to subscriber growth.
The direct broadcast satellite company, which markets home satellite service alongside EchoStar Communications (DISH Quote) and Hughes Electronics (GMH Quote), cut revenue guidance Thursday night, admitting that customer acquisition costs were getting so high that the company could hope for little better than break-even on new subscribers.
"We regret that what is obvious to us now was not equally obvious to us four quarters ago," said CEO Mark Pagon on a conference call following the company's release of financial results for the first quarter. "We took a wrong turn," he said, adding that Pegasus intended to return to a model of "sustainable and compelling growth."
Leading up to the quarterly announcement, Pegasus' shares rose 12 cents to close at $26.08. ...
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