DISH Network Announces Third Quarter 2011 Financial Results

[Slamminc11]

DISH Network Revenues Grow by 12.3 Percent to $3.60 Billion and Net Income Increases 30.3 Percent to $319 Million; DISH Declares Non-Recurring Dividend


ENGLEWOOD, CO -- (MARKET WIRE) -- 11/07/11 -- DISH Network Corporation (NASDAQ: DISH) today reported its third quarter 2011 financial results.

Revenue totaled $3.60 billion for the quarter ended Sept. 30, 2011, a 12.3 percent increase compared with $3.21 billion for the corresponding period in 2010. Net income attributable to common shareholders totaled $319 million for the quarter ended Sept. 30, 2011, a 30.3 percent increase compared with $245 million during the same period last year. Diluted earnings per share were $0.71 for the third quarter, compared with $0.55 during the same period in 2010. DISH Network's net subscribers decreased by approximately 111,000 during the third quarter, and the company ended Sept. 30, 2011, with approximately 13.945 million subscribers.

"DISH delivered another quarter of strong growth in net income compared to the same period last year," said Joe Clayton, president and CEO of DISH Network. "Our net subscriber loss improved over the second quarter of this year but continued to be affected by increased competitive pressures, including aggressive competitive promotional offers, discounting and a weak housing market. Going forward, we plan to build on the momentum of our introduction of the Blockbuster-branded programming service which allows DISH customers to stream movies and TV shows as well as receive DVDs by mail."

Detailed financial data and other information are available in DISH Network's Form 10-Q for the quarterly period ended Sept. 30, 2011, filed today with the Securities and Exchange Commission.

DISH Network will host its third quarter 2011 financial results conference call today at noon ET. The dial-in number is (800) 616-6729.

Non-Recurring Dividend
On Nov. 1, 2011, DISH Network Corporation's Board of Directors declared a non-recurring dividend of $2.00 per share on outstanding Class A and Class B common stock. The dividend will be payable in cash on Dec. 1, 2011, to shareholders of record on Nov. 17, 2011.

 

[teneightyp]

"our net subscriber loss improved"
That's pathetic.

 

[Dah-Henny]

Losing 100k subs per quarter is good for all of us subs. At some point Dish will be forced to revisit their inflated extra receiver fees.

 

[harshness]

"our net subscriber loss improved"

This is a statistic that all pay TV providers have. Normally it is called "churn" and as the churn number becomes smaller, the rate of loss is improving.

Churn seems to be the hot topic in the 10Q report as the word appears many, many times. The number was 1.83% down from 1.98% a year ago.

 

[skyviewmark]

Revenues Grow by 12.3 Percent to $3.60 Billion but net subscribers decreased by approximately 111,000 .. Dish must be thanking their lucky stars for those $17.00 reciever fees I am paying..

 

[teneightyp]

This is a statistic that all pay TV providers have.

You mean like directv's churn of over 300000 subscribers ADDED?

 

[riffjim4069]

Verizon addded 131K FiOS TV subscribers (during a strike), AT&T added 176K U-Verse TV subscribers, and Dish is proud of losing only 111K customers? Comcast lost 165K video customers, but least they were able to add 261K Internet and 133K voice customers. At some point Dish will need to care about shedding customers or get into the wireless business.

 

[mdavej]

DirecTV has done very well with net sub additions. I think this is because they have been much more aggressive than Dish in terms of huge new subscriber discounts. Today they offer free Sunday Ticket for a year, $100 referral credits, $30/month off for the first year and $15 off the second, and they have MRV. Dish promos are nowhere near that. They only offer BBMP which is less value than ST, $50 referrals, $15 off year one and none off year two, and sling but no MRV. Plus Dish's frequent provider disputes have probably had a big negative impact.

I do hope this is a wakeup call to cut receiver fees, but I'm not holding my breath.

 

[ekilgus]

I think this means that Dish may be forced to reconsider their excessive receiver fees as well as revisiting their somewhat anti-sports policy. Specifically, the NFL Sunday Ticket. I wonder if they’ve compiled a list of reasons for the subs that left?

 

[DodgerKing]

This is a statistic that all pay TV providers have. Normally it is called "churn" and as the churn number becomes smaller, the rate of loss is improving.

Churn seems to be the hot topic in the 10Q report as the word appears many, many times. The number was 1.83% down from 1.98% a year ago.

They are not talking about gross loss, they are talking about net loss. I am sorry, but it is not good when a company losses more customers than it gains quarter after quarter. Eventually they will get to the point where profits are also lost

 

[larry55]

dish has got to add more sports.

 

[teneightyp]

I think this means that Dish may be forced to reconsider their excessive receiver fees as well as revisiting their somewhat anti-sports policy.

Anti-sports = really stupid.

 

[Juan]

DirecTV has done very well with net sub additions. I think this is because they have been much more aggressive than Dish in terms of huge new subscriber discounts. Today they offer free Sunday Ticket for a year, $100 referral credits, $30/month off for the first year and $15 off the second, and they have MRV. Dish promos are nowhere near that. They only offer BBMP which is less value than ST, $50 referrals, $15 off year one and none off year two, and sling but no MRV. Plus Dish's frequent provider disputes have probably had a big negative impact.

I do hope this is a wakeup call to cut receiver fees, but I'm not holding my breath.

DTV has the "season Ticket" without that new subs would be flat

 

[goaliebob99]

I think this means that Dish may be forced to reconsider their excessive receiver fees as well as revisiting their somewhat anti-sports policy. Specifically, the NFL Sunday Ticket. I wonder if they’ve compiled a list of reasons for the subs that left?

Yep I have been saying this all along, and I have been saying that they will continue to shed subs until they fix this issue... Everyone here said i was wrong.... Look who was wrong now! Not me!

 

[cave1376]

If a company loses subs and profits is understandable, but how can a company lose subs but gain profits? Where are the profits coming from?

 

[nelson61]

DISH NETWORK 3RD QUARTER 2011 SEC 10Q - EDGAR

 

[Mr Tony]

Those extra receiver fees...thats how

 

[riffjim4069]

If a company loses subs and profits is understandable, but how can a company lose subs but gain profits? Where are the profits coming from?

Getting rid of less desireable low-profit customers (customers with minimum programming packages), who are often the first customers to leave since they don't have the "Everything" package and multiple receivers; keeping high-profit customers and raising fees; also, adding customers is expensive (hundreds of dollars per)...no new customers = no new customer acquisition expenses.

 

[ekilgus]

Getting rid of less desireable low-profit customers (customers with minimum programming packages), who are often the first customers to leave since they don't have the "Everything" package and multiple receivers; keeping high-profit customers and raising fees; also, adding customers is expensive (hundreds of dollars per)...no new customers = no new customer acquisition expenses.

I think this strategy works fine for the short term, but over time it is self destructive.

 

[teneightyp]

Getting rid of less desireable low-profit customers (customers with minimum programming packages), who are often the first customers to leave since they don't have the "Everything" package and multiple receivers; keeping high-profit customers and raising fees; also, adding customers is expensive (hundreds of dollars per)...no new customers = no new customer acquisition expenses.

If this is seriously the philosophy of this company they are toast.