DISH Network Reports Fourth Quarter and Year End 2011 Financial Results

[Scott Greczkowski]

DISH Network Reports Fourth Quarter and Year End 2011 Financial Results

In Fourth Quarter, DISH Network Revenues Grow by 13 Percent to $3.63 Billion and Net Income Increases 24 Percent to $313 Million

ENGLEWOOD, CO -- (MARKET WIRE) -- 02/23/12 -- DISH Network Corporation (NASDAQ: DISH) today reported total revenue of $3.63 billion for the quarter ended Dec. 31, 2011, a 13 percent increase compared with $3.21 billion for the corresponding period in 2010.

"DISH delivered a quarter and a year of strong growth in net income and total revenue compared to the same period last year," said Joe Clayton, president and CEO of DISH Network. "By introducing new Blockbuster-branded services, we've begun to turn the tide in subscriber losses while continuing to face increased competitive pressures. We look forward to the introduction of our new Hopper™ product this quarter, the most technically advanced whole-home HD DVR in the world."

Net income attributable to DISH Network totaled $313 million for the quarter ended Dec. 31, 2011, compared with $252 million during the corresponding period in 2010. Diluted earnings per share were $0.70 for the quarter ended Dec. 31, 2011, compared with $0.56 during the corresponding period in 2010.

For the year ended Dec. 31, 2011, DISH Network reported total revenue of $14.05 billion compared with $12.64 billion for the year ended Dec. 31, 2010, an increase of 11 percent. Net income attributable to DISH Network for the year ended Dec. 31, 2011, totaled $1.52 billion, compared with $985 million for the year ended Dec. 31, 2010. Diluted earnings per share were $3.39 for the year ended Dec. 31, 2011, compared with $2.20 during the corresponding period in 2010.

DISH Network gained approximately 22,000 net subscribers during the quarter ended Dec. 31, 2011, giving the company approximately 13.967 million subscribers at year-end. DISH Network's net subscribers decreased by approximately 166,000 for the full year ended Dec. 31, 2011.

Detailed financial data and other information are available in DISH Network's Form 10-K for the annual period ended Dec. 31, 2011, filed today with the Securities and Exchange Commission.

DISH Network will host its fourth quarter and year-end 2011 financial results conference call today at 9:30 a.m. ET. The dial-in number is (800) 616-6729.

 

[Scott Greczkowski]

SEC Filing Alert

DISH Network Corporation has filed the following document(s) with the United States Securities and Exchange Commission.

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Feb 23, 2012

Form 10-K / Annual Report
HTML

 

[satjay]

Plus for the quarter if I am reading correct, I think a pleasant surprise! Good to see!

 

[Slamminc11]

Considering all the doom and gloom some here were predicting, yes it...I even said dish was going to be at a neg. 5000 to 20000 sub add I believe...

 

[DodgerKing]

Even though they had a net loss of subs for the year, I am glad to see they had a net gain during the last quarter. Ending on a high note is a good thing. Hopefully they keep up this trend and continue to grow strong.

 

[MikeD-C05]

Once again Revenue rose over last quarter of the last year and they only gained a net of 22,000 subs. They are still stuck under the same 14 million sub mark that they have been at for years now. They are basically putting their need for short term revenues over their need for long term growth. I say they are just trying to look very profitable to a potential buyer. They need to cut down or out some of those FEES in order to attract more subs. Then their profits would rise and their sub numbers too.

 

[DodgerKing]

I am beginning to think that Dish is happy with a loyal and consistent 14 million subscriber figure. It is enough for them to continue to profit without becoming to big to manage. Everything they do seems to point to keeping their base at this level. Even their advertisements seem to be just enough to bring in new subs to make up for the few that left. If you think about it, there are very few Dish commercials on TV (maybe those with Dish may see more). I see a lot more U-Verse (and I live in FiOs territory), TWC, and DirecTV commercials than Dish commercials. It seems the only company that advertises less than Dish is FiOs.

 

[steve4810]

Yup. They don't look like their going to padlock the front gate anytime soon. But these are perilous times for this industry. Nobody in the U.S. is going to proclaim they are the "champion concentrator of eyeballs in front of a screen" for a very long time.

But this is our gain. No fat cats with General Motors 1950s attitudes like "What's good for General Motors is good for America".

Great time for customers. Nervous time for stockholders.

 

[nelson61]

The 10K does a good job of explaining the competitive situation.
Growth can only come from competitors customer base (the market is not expanding).
The landline companies have a tech advantage in that they have essentially unlimited channel capacity and can be expected to eat into the base.
The companies that "own" local stations force Dish to carry their other "owned" channels, raising costs and using up bandwidth.
Programming costs continue to be the major expense.

Sure looks to have turned into a "commodity" business that will be managed to generate cash.
I can see why they are focusing on rural areas with Viasat/Hughes since the landline providers are weak in those regions.

 

[Scott Greczkowski]

On March 15th you won't be saying that their are not a lot of DISH commercials on TV.

 

[DodgerKing]

On March 15th you won't be saying that their are not a lot of DISH commercials on TV.

And be ready for those DirecTV TV side by side commercials comparing their MRV to Dish's Hopper/Joey system.

In fact, I would not be surprised if they already have those commercials made.

 

[steve4810]

And be ready for those DirecTV TV side by side commercials comparing their MRV to Dish's Hopper/Joey system.

In fact, I would not be surprised if they already have those commercials made.

Let the games begin!!

 

[mikethedishguy]

If the have a net loss of subs and they have greater revenue this can only mean that they are doing business at less cost which I see as unlikly or they have managed to have the current customer base spend more for Dish's product. I think that there is a limit to how much a customer will pay for TV How well will the Hopper stimulate movement from one service to another who knows, How they treat the current customers will determine the success of the Hopper.

 

[nelson61]

Bloomberg:

Dish to Consider Alternatives If No FCC Waiver - Bloomberg

 

[GaryPen]

They are basically putting their need for short term revenues over their need for long term growth. I say they are just trying to look very profitable to a potential buyer.

Sadly, that is what most publicly-traded companies do nowadays. It's not necessarily designed to make the company look good to potential buyers. It's done to line the pockets of the executives whose compensation is based largely on stock.

I am beginning to think that Dish is happy with a loyal and consistent 14 million subscriber figure. It is enough for them to continue to profit without becoming to big to manage. Everything they do seems to point to keeping their base at this level.

Every thing they do is designed to create short-term stock price growth to the detriment of long-term growth and health.

Great time for customers. Nervous time for stockholders.

It's exactly the opposite.

Sure looks to have turned into a "commodity" business that will be managed to generate cash.

Generating cash is the raison d'etre of business, in general.

 

[gpollock87]

Bloomberg:

Dish to Consider Alternatives If No FCC Waiver - Bloomberg

would it be offered in rural areas?

 

[steve4810]

Sadly, that is what most publicly-traded companies do nowadays. It's not necessarily designed to make the company look good to potential buyers. It's done to line the pockets of the executives whose compensation is based largely on stock.

Whats the problem? Isn't that the point of free market capitalism?

Every thing they do is designed to create short-term stock price growth to the detriment of long-term growth and health.

Investors aren't that dumb. Buying stock is buying a growing long term positive cash flow. Trust me on this. The big boys that trade the billions a day look at trends, not last quarter.

It's exactly the opposite.

No, exactly right.

Generating cash is the raison d'etre of business, in general.

And all that cash comes from us customers. We are "guiding" the bus. Business just collects the fare. And if the bus isn't going where we want we get off and take another bus.

 

[mike123abc]

would it be offered in rural areas?

Dish would have nationwide coverage. But, remember that cell service is measured by % of population covered not % of land. That is how AT&T can claim 95%+ 3G coverage while huge swatches of land barely have edge or GPRS service.

One would think that Dish would be most competative with wireless in rural areas and TV bundling. The question of course will be pricing. Will they be able to get the price down low enough to make it attractive in urban areas. It would certainly be better than satellite internet, but of course not nearly the capacity of DSL/Cable/FIOS. If they could come in at 25-50 cents a GB I could see it being very competative in rural areas, with advanced LTE (not the current LTE) they would have the capacity needed.

 

[GaryPen]

Whats the problem? Isn't that the point of free market capitalism?

Yes it is. It's also the definition of insatiable greed. And, the problem is that it's bad for the long term health of companies that practice it. (As well as being one of the seven deadly sins, if you're into that sort of thing.)

Investors aren't that dumb. Buying stock is buying a growing long term positive cash flow. Trust me on this. The big boys that trade the billions a day look at trends, not last quarter.

Then, explain why every little tick creates knee-jerk reactions from your so-called "big boys" that throw the markets either into freefall or explosive growth, often alternating on a daily basis?

No, exactly right.

Nope. What Dish is doing is good for investors, and bad for customers. It's what most publicly-traded companies do, as I already pointed out.

And all that cash comes from us customers. We are "guiding" the bus. Business just collects the fare. And if the bus isn't going where we want we get off and take another bus.

Nope. We're just sitting in the back, while CEO's drive the bus. They generally drive it into the ditch, after pocketing tens of millions, and get fired. Then, a new CEO is hired to repeat the process. Rinse. Repeat every three years.

 

[Claude Greiner]

When you let customers drop down to the Welcome Pack and pay $10 per month for programming, no wonder why they had only gained 22,000 subs!