EchoStar/Dish raises doubts about 'ability to continue as a going concern'

Little more news-

Dish Network has received at least one financing proposal valued at more than $1 billion, with collateral on that financing tied to Dish Network’s extensive spectrum portfolio.

Dish Network is reportedly sitting on $20 billion in debt and posted distressing operational and financial results for its most recent operating quarter. The Bloomberg report cited Bloomberg Intelligence senior credit analyst Stephen Flynn who noted in a recent report that “EchoStar’s debt load of almost $22 billion is likely untenable, and the company could pursue maneuvers to improve liquidity and extend its maturity profile.”

EchoStar ended its most recent quarter with $2.4 billion in cash and marketable securities, which it planned to use pay $1 billion in notes that were due in March. It has another $2 billion in bond securities due in November and $9 billion more due in 2026.

However, it’s not currently generating enough cash flow from operations to help fund that $2 billion in bonds due later this year, thus the current financial scrambling.


Based on that above analysis, Dish needs at least about $15 Billion to cover the debt due within the next 3 years, plus they need to continue to build out to make the 75% FCC Deadline-

Covering 75% of each of its spectrum license areas with 5G, by June 2025. Analysts believe Dish will need another 15,000 cell towers – and an additional $2 billion to $3 billion – to reach that goal.


With those numbers I don't see how Dish is going to be able to stay in business much longer.
 
You don't understand what 75% coverage means....even att and verizon have large gaps in rural areas
It might not have anything to do with just rural areas, according to this site, they are not in a few major metro areas, this was updated just 2 months ago, Los Angeles alone would need major money for it’s build out-


Future Planned Areas:
Boston, MA
Charleston, WV
Los Angeles, CA

 
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There are more than 5 million towers in the world. Less than 10% are in the US. China has about 50% of them and India has about 20%. Towers are vulnerable to electronic attack as Russia did to the Ukraine to disrupt their communication. Starlink saved the day by letting Ukraine use their satellite net to communicate . Now that their will be multiple satellite low orbit webs I hope Dish is figuring out how to use them in addition to building towers.
Great, more satellites to clutter & junk up orbital space...
 
Bondholders of Dish Network sued the satellite-tv provider and demanded it unwind transfers that they claim put valuable assets out of the hands of creditors and violated lending terms, according to a lawsuit filed on Friday, Bloomberg reported.

 
Quarter Report is out, looks to be the third quarter in a row where they reported a net loss

  • EchoStar reported total revenue of $4.01 billion for the first quarter 2024, compared to $4.39 billion in the year ago quarter.
  • Net loss attributable to EchoStar in the first quarter 2024 was $107.38 million, compared to net income of $253.53 million in the year ago quarter. Diluted loss per share was $0.40, compared to earnings per share of $0.82 in the year ago quarter.
  • Consolidated OIBDA totaled $470.16 million in the first quarter, compared to $701.09 million the year ago quarter. (See OBIDA definition and non-GAAP reconciliation below.)
Net Pay-TV subscribers decreased approximately 348,000 in the first quarter.
Sling lost 135,000 subscribers, DISH TV lost 213,000 subscribers.
Retail Wireless net subscribers decreased by approximately 81,000
Broadband (Hughes) net subscribers decreased by approximately 26,000.

 
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Quarter Report is out, looks to be the third quarter in a row where they reported a net loss

  • EchoStar reported total revenue of $4.01 billion for the first quarter 2024, compared to $4.39 billion in the year ago quarter.
  • Net loss attributable to EchoStar in the first quarter 2024 was $107.38 million, compared to net income of $253.53 million in the year ago quarter. Diluted loss per share was $0.40, compared to earnings per share of $0.82 in the year ago quarter.
  • Consolidated OIBDA totaled $470.16 million in the first quarter, compared to $701.09 million the year ago quarter. (See OBIDA definition and non-GAAP reconciliation below.)
Net Pay-TV subscribers decreased approximately 348,000 in the first quarter.
Sling lost 135,000 subscribers, DISH TV lost 213,000 subscribers.
Retail Wireless net subscribers decreased by approximately 81,000
Broadband (Hughes) net subscribers decreased by approximately 26,000.


Ouch. How is Sling losing subs?
 
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Ouch. How is Sling losing subs?
Sling TV is losing because of many factors. There guide is cluttered and you have to use an antenna to get your ota stations for free. Not all local networks are offered in all areas. Also many people have decided they don't need live TV like satellite and cable provides. You Tube TV is the better of the two interfaces and works reliably. But they are higher in price than SlingTV and offer no way to just sub to a smaller pack. I think Sling TV should use the better DISH interface or something comparable. Color logos would be nice as well and a two week guide would be better. All that clutter of free channels mixed in with the regular channels drives me crazy. Hard to set up a favorites list that you can easily tune to. Sling looks cheap between the other services. People also sub at certain times of the year and cancel at others.
 
Ouch. How is Sling losing subs?
Why is all of Live TV (except YTTV) losing subscribers.

I believe it is because of a pricing and less and less new content issues.

Which I do not really just blame Dish or any other provider for, I blame the content providers for jamming so many channels, many of which provide nothing but reruns, but increase the monthly bill because of so many extra per sub fees for each channel.

Or when they split up channels, like when Fox made FX into three (FXX, FX Movies), when that happened, the per sub fee for FX stayed the same, but then they were getting that fee for two more channels, from where the content was already on FX, also increased the rerun programming on those channels.

I do wish Providers had the foresight to understand what all these extra channels was going to customers and their monthly, but when it was happening, there was no other choice fot programming except OTA, so they chose to ignore, just like they did when cord cutting started.

So now we have today, the rerun programming is available free on services like Pluto, the most popular new content from Paid Live TV, plus the exclusive shows, on streaming services and cord cutting is getting worse because they now have competition in the streaming services.

Can Cable/Satellite save themselves, yes, but must start now, get rid of all those extra channels, lower the bill, like in the YTTV range, tell those who produce the programming that paid Live TV needs more new content, but not the low rated fake reality stuff.

Will it be painful, yes, but is a little pain now better then out of business in 2-3 years?

By the way, Charter/Spectrum kind of did this, dropped some of the extra Disney owned channels, but in the way you expect a cable company to handle that, price did not go down and actually went up in January.

Charter/Spectrum just had their biggest Quarterly lost ever reported.
 
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Other than live sports and news, there is really no need for linear TV anymore for much of America. We've become accustomed to an "on demand world" where anything we want to watch is available when and where we want it: from music to movies/tv. Linear television requires a user to set recordings (basically creating ones own "on demand") or watch it live. And other than live sports or news, NONE of the programs available on HGTV, Hallmark, MTV, Nickelodeon, etc. need to carried on a live, linear channel. I'm still waiting for the first one of those to drop their linear channel and only provide on demand content. I'd assume it'd be one that targets a younger demographic, so likely Nick or MTV.
 
Other than live sports and news, there is really no need for linear TV anymore for much of America.
Except for Football, live sports gets very low ratings and I am always amazed at the Right’s deals they get.

For example, the last World Series averaged only 4 Million Households ( out of 131 Million), that is only a tad more then 3%, yet their last TV contract was in the billions.

The NBA, their ratings each year has been dropping the last 4 years, yet their next TV Contracts will add up to 8 Billion a year.

With News, plenty of options, CBS/NBC/ABC News all offer 24 Hour Live News via streaming, CNN is on MAX.
We've become accustomed to an "on demand world" where anything we want to watch is available when and where we want it: from music to movies/tv.
And that is how younger people were raised and they prefer it that way.

My kids are 34 and 29 this year, never have had a Paid Live TV Service in their homes.
 
from the article-

Asked directly by one about the company’s strategy if it “doesn’t or shouldn’t file for bankruptcy,” Akhavan said, “Our recipe is very simple, candidly. Can we push the maturities out … so that we have enough cash to operate the business? We’re very bullish about our prospects for operating the business if we have the capital to execute that. While we’re working on that financing, we aren’t sitting on our hands.”

I read that as begging the bond holders.
 
Other than live sports and news, there is really no need for linear TV anymore for much of America. We've become accustomed to an "on demand world" where anything we want to watch is available when and where we want it: from music to movies/tv. Linear television requires a user to set recordings (basically creating ones own "on demand") or watch it live. And other than live sports or news, NONE of the programs available on HGTV, Hallmark, MTV, Nickelodeon, etc. need to carried on a live, linear channel. I'm still waiting for the first one of those to drop their linear channel and only provide on demand content. I'd assume it'd be one that targets a younger demographic, so likely Nick or MTV.
They will do that when providers will no longer pay them enough.

Why is all of Live TV (except YTTV) losing subscribers.

I believe it is because of a pricing and less and less new content issues.

Which I do not really just blame Dish or any other provider for, I blame the content providers for jamming so many channels, many of which provide nothing but reruns, but increase the monthly bill because of so many extra per sub fees for each channel.

Or when they split up channels, like when Fox made FX into three (FXX, FX Movies), when that happened, the per sub fee for FX stayed the same, but then they were getting that fee for two more channels, from where the content was already on FX, also increased the rerun programming on those channels.

I do wish Providers had the foresight to understand what all these extra channels was going to customers and their monthly, but when it was happening, there was no other choice fot programming except OTA, so they chose to ignore, just like they did when cord cutting started.

So now we have today, the rerun programming is available free on services like Pluto, the most popular new content from Paid Live TV, plus the exclusive shows, on streaming services and cord cutting is getting worse because they now have competition in the streaming services.

Can Cable/Satellite save themselves, yes, but must start now, get rid of all those extra channels, lower the bill, like in the YTTV range, tell those who produce the programming that paid Live TV needs more new content, but not the low rated fake reality stuff.

Will it be painful, yes, but is a little pain now better then out of business in 2-3 years?

By the way, Charter/Spectrum kind of did this, dropped some of the extra Disney owned channels, but in the way you expect a cable company to handle that, price did not go down and actually went up in January.

Charter/Spectrum just had their biggest Quarterly lost ever reported.
Cable/sat "saving themselves" by dechanneling will not happen, particularly sat. Cable can continue with robust broadband as a backbone for streaming, but sat is just really in a bind. They can ax channels, but many of them are of such low per-sub cost that it wouldn't amount to anything significant, and if they cut into real cost-drivers like ESPN, their deflating base will collapse even faster. Perhaps some better way of targeting viewing like to cut sports and lower bills for those not wanting that would save some subs, but then those wanting the sports would have to see hikes and it'd be double trouble- reduced revenues from BOTH kinds of subs.

The term "death spiral" comes to mind. I guess they call it "doom loop" now.