DISH Network Reports First Quarter 2017 Financial Results

[Scott Greczkowski]

DISH Network Reports First Quarter 2017 Financial Results
Release Date: Monday, May 1, 2017 4:05 am MDT

ENGLEWOOD, Colo.--(BUSINESS WIRE)--DISH Network Corporation (NASDAQ: DISH) today reported revenue totaling $3.68 billion for the quarter ending March 31, 2017, compared to $3.83 billion for the corresponding period in 2016. Subscriber-related revenue for the quarter totaled $3.64 billion, compared to $3.78 billion in subscriber-related revenue for the year-ago period.

Net income attributable to DISH Network totaled $376 million for the quarter ending March 31, 2017, compared to net income of $400 million from the year-ago quarter. Diluted earnings per share for the quarter ending March 31, 2017 were $0.76, compared with $0.86 during the same period in 2016.

During the first quarter, DISH completed a transaction with EchoStar Corporation that transferred certain EchoStar assets and operations to DISH in exchange for DISH's 80 percent economic interest in the Hughes Retail Group that was held in the form of a tracking stock. As the transaction was between entities that are under common control, accounting rules require that the results of the transferred assets and operations be included in our financial statements for all periods presented, including periods prior to the completion of the transaction. This adjustment had no impact on our gross new Pay-TV or broadband subscriber activations, net Pay-TV or broadband subscriber losses or Pay-TV churn rate for all periods presented.

DISH includes all of its Sling TV subscribers in the company’s total Pay-TV metrics, including in the Pay-TV subscriber, Pay-TV ARPU and Pay-TV churn rate numbers set forth below. Sling TV subscribers are reported net of disconnects in our gross new Pay-TV subscriber activations.

In the first quarter, DISH activated approximately 547,000 gross new Pay-TV subscribers, compared to approximately 657,000 gross new Pay-TV subscribers in the prior year’s first quarter. Net Pay-TV subscribers declined approximately 143,000 in the first quarter, compared to a decline of approximately 23,000 in the first quarter 2016.

The company closed the first quarter with 13.528 million Pay-TV subscribers, compared to 13.874 million Pay-TV subscribers at the end of first quarter 2016.

Pay-TV ARPU for the first quarter totaled $86.55, compared to the year-ago period’s Pay-TV ARPU of $87.94. Pay-TV subscriber churn rate was 1.69 percent versus 1.63 percent for first quarter 2016.

DISH lost approximately 25,000 net broadband subscribers in the first quarter, bringing its broadband subscriber base to approximately 555,000.

Detailed financial data and other information are available in DISH Network's Form 10-Q for the quarter ended March 31, 2017, filed today with the Securities and Exchange Commission.

DISH Network will host its first quarter 2017 financial results conference call today at noon ET. Participant conference numbers: (888) 394-8218 (U.S.) and (719) 457-1036, Conference ID: 8074221

A webcast replay will be available on DISH's Investor Relations website, http://dish.client.shareholder.com, today from 6 p.m. to 12 a.m. ET.

 

[MitchDeerfield]

They lost 346,000 subscribers in a year?

 

[lakebum431]

They lost 346,000 subscribers in a year?

Yep

 

[boba]

They lost 346,000 subscribers in a year?

That should be a stimulus to take care of the customers they have. Maybe a good time to correct existing problems instead of inventing NEW ones.

 

[Yespage]

That should be a stimulus to take care of the customers they have. Maybe a good time to correct existing problems instead of inventing NEW ones.

Their creation of Flex packs was exactly to address this.

Problem is, people are dropping Dish likely because of the ridiculous bundles that the Monopolies are allowed to sell their customers. And until Dish can offer more than Sat, they have that major problem to deal with.

 

[stardust3]

That is still a huge mountain of cash even though it's less than last year.

 

[rad]

They lost 346,000 subscribers in a year?

Remember that the include the Sling TV numbers in there so either Sling TV isn't doing that great anymore or they're really bleeding DBS customers.

 

[MitchDeerfield]

They are making more profits from less and less customers, plus the churn rate is going up. How sustainable is that?

 

[Bruce]

I think DTV did almost as badly.

AT&T Drops 233,000 TV Subscribers as DirecTV Satellite Customers Remain Flat in Q1

http://variety.com/2017/digital/news/att-directv-q1-tv-subscribers-1202395243/




Sent from my iPad using the SatelliteGuys app!

 

[rad]

They are making more profits from less and less customers, plus the churn rate is going up. How sustainable is that?

So maybe all the price increases that they blame on the content providers also go to increase their profits?

 

[MikeD-C05]

Remember that the include the Sling TV numbers in there so either Sling TV isn't doing that go anymore or they're really bleeding DBS customers.

Bingo we have a winner. Even Sling numbers can't help hide the bleeding now and the profits are now dropping when they used to be the saving grace. The point of diminishing returns has now been met.

 

[MikeD-C05]

They are making more profits from less and less customers, plus the churn rate is going up. How sustainable is that?

Profits were down over last year at this time. $376million compared to last year quarter one at $400million. Even profits are now dropping.

 

[mwdxer1]

Also Dish is famous losing channels during disputes, more so than other carriers and that plays a part. Some people once they leave a carrier they never return. I know at least two cases, where the people had Dish, but got ticked off with the loss of their favorite channels. One moved to Direct and the other to cable. They tell me, sure there can be disputes, but not nearly as often.

 

[Yespage]

When was the last drop out for a non-local channel with Dish?

 

[nelson61]

This is why they fought Hearst. TV costs too much.

And is why Charlie us buying bandwidth.

Satellite is a mature, shrinking, cash cow that will always be around but the Glory days are gone. So they are putting the cash to work in new ventures


Sent from my SM-G935F using the SatelliteGuys app!

 

[Juan]

When was the last drop out for a non-local channel with Dish?

Been several this year

Sent from my SM-G950U using the SatelliteGuys app!

 

[dare2be]

Name one.

 

[bluegras]

Ergen: Dish Doesn’t Need a Partner to Build Wireless Network
Dish Network chairman and CEO Charlie Ergen reiterated his commitment to build out the majority of its wireless network by the prescribed federal deadline, adding that the satellite TV company doesn’t need a partner to do so.

That’s a bit of a departure from Ergen’s earlier stance a few years ago, when he said it didn’t make sense to start the buildout without a strategic partner to help shoulder the cost.

Dish has until March 2020 to build out 70% of its wireless network. And while Ergen said it was more than willing to go it alone, there is ample time to find a cohort.

“Our focus today is to build out to meet the 2020 deadline with or without a partner,” Ergen said on a conference call with analysts to discuss first quarter results. “We’re prepared to do it within our balance sheet and again, it’s going to be a new, narrowband IP network that doesn’t exist today. Obviously, I hope there is the opportunity in the next three years for a lot of potential partnerships.”

http://www.multichannel.com/news/ott/ergen-dish-doesn-t-need-partner-build-wireless-network/412554

 

[Mochuf]

Profits were down over last year at this time. $376million compared to last year quarter one at $400million. Even profits are now dropping.

Right, it has finally reached this. People (including me) have wondered when the profits would start dropping. You can only squeeze more money out of the customers who stay to make up for people leaving for a limited time. If next quarter shows the same trend as this one, then Dish will really need a partner.

 

[Mochuf]

Ergen: Dish Doesn’t Need a Partner to Build Wireless Network
Dish Network chairman and CEO Charlie Ergen reiterated his commitment to build out the majority of its wireless network by the prescribed federal deadline, adding that the satellite TV company doesn’t need a partner to do so.

That’s a bit of a departure from Ergen’s earlier stance a few years ago, when he said it didn’t make sense to start the buildout without a strategic partner to help shoulder the cost.

Dish has until March 2020 to build out 70% of its wireless network. And while Ergen said it was more than willing to go it alone, there is ample time to find a cohort.

“Our focus today is to build out to meet the 2020 deadline with or without a partner,” Ergen said on a conference call with analysts to discuss first quarter results. “We’re prepared to do it within our balance sheet and again, it’s going to be a new, narrowband IP network that doesn’t exist today. Obviously, I hope there is the opportunity in the next three years for a lot of potential partnerships.”

http://www.multichannel.com/news/ott/ergen-dish-doesn-t-need-partner-build-wireless-network/412554

If Charlie could do it alone, don't you think that he would have done so when he had more time to build? Now that he has only three years left, he better get building a network as of yesterday. And with time getting shorter, the potential partners out there will want more control than ever before.