Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nasdaq  >  Dish Network    DISH

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Dish Network Reports More Users But Lower 1Q Profit

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/07/2012 | 09:08pm CEST

--Dish boosts subscriber numbers but still reports disappointing revenue

--Says in talks with wireless tech, infrastructure companies over spectrum

--Closing 100 Blockbuster shops in 2Q, could close more

(Updates with details from conference call in the first through third paragraphs, analyst comments and share price.)

 
   By William Launder 
   Of  
 

Dish Network Corp. (>> DISH Network Corp.) boosted its subscriber rolls in the first quarter by keeping rates stable, but the additional viewers stopped short of delivering the revenue expected from the satellite-TV operator.

In addition to its quarterly update, Dish also gave a few clues as to how it plans to use the airwaves that the company has paid several billion dollars to acquire in recent years. Chairman Charlie Ergen said Dish is in ongoing talks with wireless technology and infrastructure companies about collaborating.

"It probably makes sense to work with people who are already in the business," Ergen told analysts on a conference call. He said Dish's portfolio of 40 megahertz spectrum would be sufficient to get started in the business, suggesting Dish won't try to acquire more airwaves anytime soon.

As airwaves become more scarce, Dish's holdings have become a lightning rod for speculation. The company needs regulatory approval in order to convert the spectrum for terrestrial use, which would allow Dish to build its own wireless network or seek out potentially lucrative deals with existing operators like Verizon Wireless or AT&T Inc. (>> AT&T Inc.).

Dish awaits a decision on converting the assets from the Federal Communications Commission, which is said to want to decide by the end of the year, after taking public comment.

In the first quarter, Dish added 104,000 net subscribers and lowered its monthly subscriber-turnover rate, or churn, thanks to the addition of its Blockbuster video service and the absence of a rate increase. The Englewood, Colo., company added 58,000 net subscribers a year earlier.

Dish is attempting to attract more affluent customers who are willing to spend more each month on video and who are less likely to cancel their service. In an aggressive move for pay-TV operators who face consistently rising programming costs, Dish has said it will freeze prices through January 2013.

Dish reported a profit of $360.3 million, or 80 cents a share, down from $549.4 million, or $1.22 a share, a year earlier. The year-earlier quarter included a $340.7 million gain from the reversal of accrued expenses related to a settlement agreement with TiVo.

Revenue jumped 11% to $3.58 billion. Analysts polled by Thomson Reuters had forecast earnings of 70 cents a share on revenue of $3.62 billion.

Analysts worried that the strong subscriber growth wasn't reflected in the company's bottom-line performance. "Revenue growth, revenue per subscriber, and subscriber-related expenses ... were all less encouraging," Bernstein analyst Craig Moffett said.

Dish shares rose 21 cents to $31.52 Monday; for the year, the stock has risen 10.7%.

Blockbuster, which Dish acquired out of bankruptcy last year in an effort to diversify from the maturing U.S. subscription TV market, contributed a modest $14 million operating profit.

Dish is aggressively closing unprofitable Blockbuster locations and selling off their inventory, shutting 500 locations in the first quarter. Another 100 closures are planned for the current quarter, and Dish said it might shut more stores going forward.

Dish is instead focusing on Blockbuster's streaming service, which it launched last year as part of broader efforts by pay-TV operators to establish a niche in the growing over-the-top video business.

Dish said its goal was to operate Blockbuster on a break-even basis, while experimenting with new marketing ideas for the stores and in order to integrate the business with its pay-TV operations.

Blockbuster is currently offered by Dish in a bundled package with its satellite video service, according to the Dish Web site.

Ergen offered little praise for the types of digital partnerships with Netflix Inc. (NFLX) and Apple Inc. (>> Apple Inc.) that content companies have credited for boosting their profits in recent quarters.

"Programmers have devalued programming content by making it available in a variety of outlets," Ergen told analysts. "It's not quite the same as if something was exclusive."

Dish Network last week dropped its coverage of AMC Networks Inc. (>> AMC Networks Inc) channels, including AMC and the Independent Film Channel, citing high costs "compared to their low viewership."

-By William Launder, Dow Jones Newswires; 212-416-3412; [email protected]

--Melodie Warner contributed to this article.

Stocks mentioned in the article : DISH Network Corp., Apple Inc., AMC Networks Inc, AT&T Inc.
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on DISH NETWORK
06/22 DISH NETWORK : Multi-room Music Now Available on DISH's Hopper DVR
06/22 DISH NETWORK : Multi-room Music Now Available on DISH’s Hopper DVR
06/09 DISH NETWORK CORP : Other Events (form 8-K)
06/07 DISH NETWORK : slammed with $280 million fine for illegal robocalls
06/07 DISH NETWORK : Attorney General Stein Announces $18.6 Million for NC for Do-Not-..
06/07 DISH NETWORK : FTC and DOJ Case Results in Historic Decision Awarding $280 Milli..
06/07 BUSINESS DIGEST : Retailers send U.S. indexes to narrow losses
06/07 DISH NETWORK : hit with record $280 million fine for 'Do No Call' violations
06/06 DISH NETWORK : Justice Department, with FTC, Wins Largest-Ever Telemarketing Pen..
06/06 DISH NETWORK : Satellite-TV firm Dish fined $280 million in robocall suit
More news
Sector news : Cable Service Providers
06/20 PROSIEBENSAT 1 MEDIA : .1 sells online travel agency Etraveli to CVC
06/16 WALT DISNEY : ESPN announces executive reorganization
06/15 Sky and Virgin Media join forces for targeted TV advertising
06/15DJSKY : Virgin Media Form Targeted TV Advertising Partnership
06/14DJSKY : Italia Secures UEFA Champions, Europa Leagues
More sector news : Cable Service Providers
News from SeekingAlpha
06/09 Dish Network +2.5% on Amazon merger chatter
06/08 After Hours Gainers / Losers
06/05 Dish Network facing $280M payment to settle telemarketing suit
05/23 CITI : Dish, Amazon wireless deal could serve IoT ambitions
05/23 Cable Provider WideOpenWest Looks Weak Ahead Of IPO
Advertisement
Financials ($)
Sales 2017 14 690 M
EBIT 2017 2 200 M
Net income 2017 1 388 M
Debt 2017 10 175 M
Yield 2017 -
P/E ratio 2017 23,34
P/E ratio 2018 25,77
EV / Sales 2017 2,72x
EV / Sales 2018 2,67x
Capitalization 29 767 M
More Financials
Chart DISH NETWORK
Duration : Period :
Dish Network Technical Analysis Chart | DISH | US25470M1099 | 4-Traders
Full-screen chart
Technical analysis trends DISH NETWORK
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 25
Average target price 74,7 $
Spread / Average Target 17%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Charles William Ergen Chairman & Chief Executive Officer
W. Erik Carlson President & Chief Operating Officer
Steven E. Swain Chief Financial Officer & Senior Vice President
Roger J. Lynch Executive Vice President-Advanced Technologies
Vivek Khemka Chief Technology Officer & Executive VP
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
DISH NETWORK10.29%29 767
CHARTER COMMUNICATIONS..14.89%88 502
LIBERTY GLOBAL PLC-1.99%28 754
LIBERTY GLOBAL LILAC-5.65%28 754
LIBERTY BROADBAND CORP17.25%15 562
CYFROWY POLSAT SA2.27%4 271
More Results