DISH Re-Sharpens Focus After Sub Loss
(SkyReport) DISH Network may have reported a down second quarter, but CEO Charlie Ergen said the DBS company is working to address the challenges.
The small dish platform reported - for the first time - a net subscriber loss of 25,000 for the second quarter. That took DISH Network's customer total to 13.585 million subscribers.
"It's not a good number … and I'm disappointed with that," said Ergen on the second quarter subscriber loss. "But we will stay on top of operations. We are not going to take a back seat to operational excellence."
In a conference call with analysts Monday, Ergen outlined four areas that have impacted DISH's operations. One of the items was the souring economy and woes being experienced in the housing market, which Ergen admitted was out of the company's control.
The other three matters included ongoing piracy and fraud troubles, an intensely competitive environment in the pay-TV business, and operational efficiencies at the company. Ergen stressed during the call that the company is addressing those challenges.
On the piracy front, DISH started sending out a new generation of smart cards last month, and that could address illegitimate boxes receiving the DBS service, he said. On the operational issues, Ergen said DISH is "answering the phones on time" and working on other efforts tied to customer service.
On the competition, Ergen said DISH continues to ramp up its high-def efforts. The service recently launched new HD channels - which numbered 114 as of last Friday - and is preparing to use a new satellite - EchoStar XI - by the end of the month.
Second quarter churn was 1.87 percent, a jump from 1.68 percent in the first quarter and 1.68 for second quarter 2007.
DISH Network said revenue totaled $2.91 billion for the second quarter, a 5.6 percent increase compared to $2.76 billion for the corresponding period in 2007. Net income for the second quarter was $336 million, compared with $224 million for the corresponding period in 2007.
A Perspective on DISH's 2Q Sub Loss
The second quarter subscriber loss for DISH Network may be unprecedented in DBS circles. But it's not the first set of customer defections for the satellite business.
For years, viewers have been ditching big dish C-Band services. At one point, C-Band customers totaled more than 2 million. As of November 2007, the number of C-Band users paying for programming services stood at 38,743, stated numbers from Motorola's C-Band access control unit.
Still, the DISH second quarter subscriber losses are a first for the DBS side of the business. And the drop illustrated some slowing customer enrollment trends for the No. 2 small dish company.
In the first quarter, DISH Network reported that it netted 35,000 customers, for a total of 13.815 million. For comparison, in second quarter 2007, the company added 170,000 net new subscribers, ending the period with approximately 13.585 million subscribers.
EchoStar Revenue, Income Up
As for Charlie Ergen's other company, EchoStar reported second quarter revenue of $483 million, a 46.2 percent increase when compared with $331 million for the corresponding period in 2007.
EchoStar reported net income of $48 million for the quarter, compared with net losses of $15 million for the same period in 2007. Basic earnings per share were 53 cents for the quarter, compared with a basic loss per share of 16 cents for the corresponding period last year.
EchoStar operates two primary businesses, which include equipment sales and digital broadcast operations and satellite services.
(SkyReport) DISH Network may have reported a down second quarter, but CEO Charlie Ergen said the DBS company is working to address the challenges.
The small dish platform reported - for the first time - a net subscriber loss of 25,000 for the second quarter. That took DISH Network's customer total to 13.585 million subscribers.
"It's not a good number … and I'm disappointed with that," said Ergen on the second quarter subscriber loss. "But we will stay on top of operations. We are not going to take a back seat to operational excellence."
In a conference call with analysts Monday, Ergen outlined four areas that have impacted DISH's operations. One of the items was the souring economy and woes being experienced in the housing market, which Ergen admitted was out of the company's control.
The other three matters included ongoing piracy and fraud troubles, an intensely competitive environment in the pay-TV business, and operational efficiencies at the company. Ergen stressed during the call that the company is addressing those challenges.
On the piracy front, DISH started sending out a new generation of smart cards last month, and that could address illegitimate boxes receiving the DBS service, he said. On the operational issues, Ergen said DISH is "answering the phones on time" and working on other efforts tied to customer service.
On the competition, Ergen said DISH continues to ramp up its high-def efforts. The service recently launched new HD channels - which numbered 114 as of last Friday - and is preparing to use a new satellite - EchoStar XI - by the end of the month.
Second quarter churn was 1.87 percent, a jump from 1.68 percent in the first quarter and 1.68 for second quarter 2007.
DISH Network said revenue totaled $2.91 billion for the second quarter, a 5.6 percent increase compared to $2.76 billion for the corresponding period in 2007. Net income for the second quarter was $336 million, compared with $224 million for the corresponding period in 2007.
A Perspective on DISH's 2Q Sub Loss
The second quarter subscriber loss for DISH Network may be unprecedented in DBS circles. But it's not the first set of customer defections for the satellite business.
For years, viewers have been ditching big dish C-Band services. At one point, C-Band customers totaled more than 2 million. As of November 2007, the number of C-Band users paying for programming services stood at 38,743, stated numbers from Motorola's C-Band access control unit.
Still, the DISH second quarter subscriber losses are a first for the DBS side of the business. And the drop illustrated some slowing customer enrollment trends for the No. 2 small dish company.
In the first quarter, DISH Network reported that it netted 35,000 customers, for a total of 13.815 million. For comparison, in second quarter 2007, the company added 170,000 net new subscribers, ending the period with approximately 13.585 million subscribers.
EchoStar Revenue, Income Up
As for Charlie Ergen's other company, EchoStar reported second quarter revenue of $483 million, a 46.2 percent increase when compared with $331 million for the corresponding period in 2007.
EchoStar reported net income of $48 million for the quarter, compared with net losses of $15 million for the same period in 2007. Basic earnings per share were 53 cents for the quarter, compared with a basic loss per share of 16 cents for the corresponding period last year.
EchoStar operates two primary businesses, which include equipment sales and digital broadcast operations and satellite services.
