DISH Network Reports Fourth Quarter and Year End 2011 Financial Results

[Stargazer]

Let's see, $300 million a quarter, $100 million a month, 14 million customers, roughly $7 per customer per month profit. Thought Dish made a LOT more than that. I saw something a while back that Dish makes a 60% gross profit on programming. You know that their profit has got to be a bit higher than that on these "fees" that they charge.

 

[dare2be]

In regards to RSN, Ergan has stated that according to their data shows that the vast majority of Dish subs DON'T view RSN's regularly or at all, and in that case during the last negotiations for RSN's, he was prepared to have Dish WITHOUT RSN's.

I am just amazed by this. I watch my RSN WAY more than ESPN to get my hometown baseball and hockey teams' live games. I couldn't care less about ESPN, even Monday Night Football, as the game is almost always simulcast on the local ABC station as well for my team.

 

[meStevo]

I couldn't care less about ESPN, even Monday Night Football

...which puts you in a pretty small minority...

as the game is almost always simulcast on the local ABC station as well for my team.

...Steelers were only on MNF once last season.

 

[dare2be]

...Steelers were only on MNF once last season.

But usually they are 2 or 3 times. They just happened to get most of their usual 4-5 primetime appearances on Sunday nights last year.

 

[rapidturtle]

The RSN's are the kicker for people in NY area like me. Pass some of the savings on to us in this area, that have to endure our contracts without our RSN's. I do enjoy a lot of things about Dish. They have treated me very fairly in my time with them, but when my contract is up in about 9 months, I will probably look elsewhere, unless by some miracle they get at least one of my RSN's back to show me they are at least trying.
The NY area is a pretty big area, with a lot of sports fans to completely neglect. I am surprised they didn't show more losses due to NY people jumping ship. If they did put together a good sports package in this area, maybe they could gain a million subs and get over that 14 million hump.

 

[CK SatGuy]

Here's the transcript of the earnings call for those interested in reading it. Dish Network's CEO Discusses Q4 2011 Results - Earnings Call Transcript - Seeking Alpha

 

[TheForce]

And people think pissing off the IRS is bad, try pissing off the FCC.

Never piss off the IRS! FCC? Oh, do I have some funny stories here. Hint: WRFH Radio Free Harlem pirate radio station of the late 60's.

I won't "invest" long in either DirecTV or Dish. But when I see a pull back and a possible spike in the near future, I may trade the stock for a short time period to pocket a few hundred bucks. The very reason you stated, Claude, is why I won't invest for the long haul in Dish or DTV. But this past year, Dish was a better trade than DTV which had flat growth. Dish is up by $5 a share and paid a special dividend on Dec 1 of $2 a share for a net gain of about $7 year over year. DirecTV's year was 2010 when the trade about doubled your investment due to the stock buyback.

 

[Roxor]

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.

I sure hope and pray Dish raises my fees soon so they can make more money this fiscal year for the shareholders.

 

[nelson61]

Here's the transcript of the earnings call for those interested in reading it. Dish Network's CEO Discusses Q4 2011 Results - Earnings Call Transcript - Seeking Alpha

From the Q&A

$771 subscriber aquisition cost (SAC) and they do not intend to discount as much as competition has been doing to gain customers.
They expect they might make more money on the Hopper since it's material cost is similar to existing (722) and the whole house pricing would bring in more money

 

[mike123abc]

From the Q&A

$771 subscriber aquisition cost (SAC) and they do not intend to discount as much as competition has been doing to gain customers.
They expect they might make more money on the Hopper since it's material cost is similar to existing (722) and the whole house pricing would bring in more money

The Hopper system should do very well. As you mentioned the costs are getting down to the 722 level for the Hopper and the Joeys are just icing, tiny tunerless cheap boxes that they get to lease out for $7/month.

 

[HanoverPretzel]

How much profit would be acceptable to you?

I'm not sure there's any one number I could put on it. I'm just saying when you're making a billion and a half a year and then turn around and tell your customers you either have to cut out their favorite channels or raise their bills, there's something disingenuous about that. Dish could easily simply keep the channels, not raise prices for customers, and make one billion a year instead of a billion and a half, or whatever. Saying that they have to raise prices for customers in order to keep the channels is ridiculous. It's propaganda.

 

[HanoverPretzel]

Ergan has said, many times, that he can see or understand the very high cost of ESPN or other sport channels as it is very expensive to get the rights to the pro games and athlete salaries are expensive, etc. so he has never really ranted against ESPN. In regards to RSN, Ergan has stated that according to their data shows that the vast majority of Dish subs DON'T view RSN's regularly or at all, and in that case during the last negotiations for RSN's, he was prepared to have Dish WITHOUT RSN's.

My two RSNs and their alternate channels are easily in my top 5 watched channels. They might even be 1-2. But maybe I'm not a typical Dish customer.

Here's the thing, though, could RSNs not be widely viewed by Dish be somewhat of a self-fulfilling prophecy? Dish markets to non-sports fans, sticks the RSNs on high number channels, and often gets in disputes where RSNs are not carried anymore in some regions. I wonder if RSNs are more significantly viewed on Directv and on cable.

The other thing is, what's driving the decision to subscribe? When I was a kid, my mother didn't want to subscribe to cable, but my father and I did because we were big sports fans. We couldn't always watch the games- he had to work late sometimes, and I had to go to bed early- but they were there when we could watch them. My mother might have actually watched more television than we did, but she didn't care as much, and if we had stopped wanting it, she would have had no problem with us cancelling it.

So, sometimes, I think even knowing which channels are watched and how often isn't necessarily providing a 100% clear window into what is persuading customers to pay their bills each month. Sometimes they're paying for a channel to be there when they want it, but more often watching stuff that's there when they happen to be in front of their television, stuff they wouldn't pay for without that channel that is driving them to subscribe in the first place.

To make the point, name your favorite "crap" channel. Let's get a total of how many Dish has, and we know Dish doesn't really want them, nor do we.

I could do without all those infomercial channels. I don't think I've ever seen anything like it. Like one time there was a Budweiser channel that just ran Budweiser ads 24/7. Cable didn't do that kind of thing. I get that Dish makes money off it, but how come I don't see the savings on my bill?

 

[steve4810]

Saying that they have to raise prices for customers in order to keep the channels is ridiculous. It's propaganda.

I agree. They don't have to do anything, accept maybe to keep their jobs.

 

[steve4810]

I could do without all those infomercial channels. I don't think I've ever seen anything like it. Like one time there was a Budweiser channel that just ran Budweiser ads 24/7. Cable didn't do that kind of thing. I get that Dish makes money off it, but how come I don't see the savings on my bill?

I'm sure you did. As you have said. Without the infomercial revenue they would have raised your bill and told you they had to do it to replace the lost infomercial revenue.

And cable companies do it too. But national advertisers only buy time on Time Warner and the other big-shot company. Dish brings them into 13 million homes at a time. It's statistically impossible for them to not get at least a quarter jillion eye balls per day.

 

[mike123abc]

I'm not sure there's any one number I could put on it. I'm just saying when you're making a billion and a half a year and then turn around and tell your customers you either have to cut out their favorite channels or raise their bills, there's something disingenuous about that. Dish could easily simply keep the channels, not raise prices for customers, and make one billion a year instead of a billion and a half, or whatever. Saying that they have to raise prices for customers in order to keep the channels is ridiculous. It's propaganda.

As a consumer you are free to choose another company, perhaps one with a lower profit margin... Good luck, as most cable companies have a higher one...

 

[Laddyboy]

I don't think making $7 per month per sub, if that's the correct amount, given all the risk assumed is an obscene amount.

 

[dare2be]

I don't think making $7 per month per sub, if that's the correct amount, given all the risk assumed is an obscene amount.

Actually, it's more like $9 per month per sub on average.

net profit: 1.52B / 12 / 14 million (rounded up) = $9.05 per month
total revenue: 14.05B /12/14M = $83.63 per month, for a 10.82% margin

 

[Stargazer]

Usually when a company or individual does not make much money on an asset or business they are at least gaining equity. When a company loses subscribers but makes a small profit, that profit needs to more than make up for the loss of subs.

 

[nelson61]

Echostar filed their 10K late (3/7/2012).

Echostar 2011 10K (final)

The new Hughes Jupiter broadband satellite scheduled for summer 2012 launch has been renamed ECHOSTAR 17.

They began lease payments on Quetzsat when testing was completed and they are evaluating alternative uses (Brazil slot?)

From the financials, Dish is paying big bucks for set top boxes (must be on quite a upgrade program).