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EchoStar's fortunes are looking up. The Littleton, CO–based direct broadcast satellite (DBS) service has yet to win regulatory approval in its bid to acquire rival DirecTV, but it is enjoying a surge in revenue, the result of massive growth in its subscriber base.

On Thursday, May 2, EchoStar reported that its revenue for the first quarter increased by 28% to $1.1 billion, compared to $861.9 million for the same period a year earlier. Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to $178.5 million from $51.1 million a year earlier. The DBS service is still in the red, but less so than last year. Net loss for the first quarter was $38.6 million, versus $169.9 for the first quarter last year. Operating income for the first quarter was $95.3 million, up from an operating loss of $15.2 million during the first quarter of 2001.

The improving picture is directly attributable to an increase in new subscribers. EchoStar added approximately 335,000 new subscribers during the first quarter. At the end of March, the company's Dish Network had about 7.16 million subscribers, a 25% rise from last year's base.

Rival DirecTV has more than twice as many subscribers. A merged DBS service would create one of the biggest television services in the US, comparable to the most powerful cable companies. Late last year, General Motors shareholders voted to sell DirecTV's parent company Hughes Electronics to EchoStar. The Federal Communications Commission is still examining the deal. FCC officials recently said that no ruling on the matter would be forthcoming until midsummer at the earliest.