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

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

Delayed Quote. Delayed  - 08/26 10:00:00 pm
48.84 USD   -0.93%
08/19 Viacom and controlling shareholder Sumner Redstone agree on settl..
08/18 DISH NETWORK : Endorses Sinclair and NAB Free Antenna Giveaway
08/16DJNEUROMAMA : SEC Suspends Trading in OTC Stock After Value Soars to $..
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

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; william.launder@dowjones.com

--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 CORP
08/19 Viacom and controlling shareholder Sumner Redstone agree on settlement - sour..
08/18 DISH NETWORK : Announces Closing of $3 Billion Offering of 3.375% Convertible No..
08/18 DISH NETWORK : Endorses Sinclair and NAB Free Antenna Giveaway
08/16DJNEUROMAMA : SEC Suspends Trading in OTC Stock After Value Soars to $35 Billion
08/11 DISH NETWORK : Announces Convertible Notes Offering
08/11 DISH NETWORK : Places Offering of $2.5 Billion in Convertible Notes
08/10 DISH NETWORK : NFL Network and NFL RedZone Launch on Sling TV
08/09DJDisney Reports Higher Profits, Stake in Baseball's Streaming Service
08/08 DISH NETWORK CORP : Entry into a Material Definitive Agreement, Creation of a Di..
08/08 DISH : Network Announces Closing of $3 Billion Offering of 3.375% Convertible No..
More news
Sector news : Cable Service Providers
08/27DJVIACOM : Possible Accord Reached in Family Battle Over Sumner Redstone Trust -- ..
08/26DJVIACOM : Possible Accord Reached in Family Battle Over Sumner Redstone Trust
08/26 VIACOM : Redstone granddaughter agrees to Viacom case dismissal
08/26DJParamount Pictures Chief Gets Vote of Confidence From Viacom
08/25DJVivendi Announces Cost Cuts at TV Unit
More sector news : Cable Service Providers
News from SeekingAlpha
08/24 FCC spectrum auction hits first benchmark, with long ways to go
08/18 Dish Network, Tribune still sparring as blackout threatens football
08/18 Tracking George Soros's Portfolio - Q2 2016 Update
08/16 Carriers jockey for position as FCC auction starts phase two
08/15 SCRIPPS NETWORKS : Turn-Key Or A Fixer-Upper?
Advertisement
Financials ($)
Sales 2016 15 096 M
EBIT 2016 2 117 M
Net income 2016 1 357 M
Debt 2016 10 552 M
Yield 2016 -
P/E ratio 2016 16,56
P/E ratio 2017 18,54
EV / Sales 2016 2,20x
EV / Sales 2017 2,13x
Capitalization 22 704 M
More Financials
Chart DISH NETWORK CORP
Duration : Period :
DISH Network Corp Technical Analysis Chart | DISH | US25470M1099 | 4-Traders
Full-screen chart
Technical analysis trends DISH NETWORK CORP
Short TermMid-TermLong Term
TrendsBearishNeutralNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 26
Average target price 71,1 $
Spread / Average Target 46%
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 NETWORK CORP-14.59%22 704
LIBERTY GLOBAL PLC-27.24%32 596
LIBERTY GLOBAL LILAC-35.19%32 596
LIBERTY BROADBAND CORP29.80%12 370
CYFROWY POLSAT SA17.17%3 967
AMC NETWORKS INC-27.36%3 873
More Results