Bad News For Dish

[armymp30]

Dish Network's 3Q Net Slides 54%; EchoStar Loss Widens

November 10, 2008: 07:06 AM EST


DOW JONES NEWSWIRES

Dish Network Corp. (DISH) posted a 54% decrease in third-quarter net income on an investment-related charge and a second-straight quarterly reduction in subscribership while sister company EchoStar Corp.'s (SATS) net loss widened on a similar charge.
Dish, the nation's second-largest satellite television provider behind DirecTV Group Inc. (DTV), posted net income of $92 million, or 20 cents a share, down from $200 million, or 45 cents a share, a year earlier. The latest results included an undisclosed amount of charge on marketable and non-marketable securities.

Revenue increased 5.1% to $2.94 billion.

Analysts polled by Thomson Reuters expected earnings of 58 cents on revenue of $2.9 billion.

The company lost 10,000 net subscribers during the quarter, ending the period with about 13.8 million subscribers. That follows the second quarter's decline of 25,000, the first for Dish Network.

In September, AT&T Inc. (T) said it would switch its signal to DirecTV from Dish Network starting Jan. 31, after its agreement with Dish expires. The announcement was a huge blow to Dish and will likely result in further subscriber losses.

Dish faces escalating pressure to devise a new survival strategy in the face of tough competition not just from DirecTV but also from cable providers and telecom firms offering TV service. Analysts said its options included improving customers' experience, bundling services with TV makers or retailers and finding new partnerships. Analysts have also said a partnership with TiVo Inc. (TIVO) is possible after years of contentious patent litigation

Dish focuses on the low-end consumer, which is getting squeezed by the weakening macroeconomic environment. DirecTV has been able to better weather the storm because its customers are more affluent and less vulnerable and because it had a quicker roll-out of high-definition programming and sports packages.

In its third quarter as a separate public company, EchoStar posted a net loss of $308 million,or $3.43 a share, compared with a year-earlier net loss of $7 million, or 7 cents a share, a year earlier. The latest results also included unrealized securities losses, also not detailed.

Revenue rose 52% to $616 million.

Analysts expected a 1-cent loss on revenue of $520 million.

Dish's shares closed at $15.52 Friday and EchoStar's closed at $18.40. There was no premarket activity
.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; kerry.grace@ dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http:// www.djnewsplus.com/al?rnd=IDbR9DERIRN9iLRqXQUEig%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires 11-10-08 0706ET Copyright (c) 2008 Dow Jones & Company, Inc.

 

[tigerfan33]

I wonder if Charlie will blame the economy this time like did last q.

I hope before he speaks this time he does read Direct numbers and come up with something new. Like a new strategy.

 

[KAB]

I wonder if Charlie will blame the economy this time like did last q.

Why shouldn't he...especially during this last quarter? Every one and everything is sliding downward. At least the hemorrhaging slowed significantly.

 

[riffjim4069]

I wonder if Charlie will blame the economy this time like did last quarter.

According to the quarterly report he filed with the SEC...yes.

 

[Scott Greczkowski]

If it was the economy then DirecTV's numbers (which came out last week) would have been bad as well.

Its not the poor economy, its poor managment at Dish Network.

 

[RandallA]

If it was the economy then DirecTV's numbers (which came out last week) would have been bad as well.

Its not the poor economy, its poor managment at Dish Network.

The problem is that they will never admit it, so they'll just keep going down.

 

[Kru83]

The problem is that they will never admit it, so they'll just keep going down.

Another problem is they are still blaming everything down to Installation Dept. they need to get better at advertising with big stars, Dish also needs to stop doing small internal campaign, such as they have this new campaign that reduce calls at the call center, they need to realize it that's just COST OF DOING BUSINESS. they need to stop moving channels around, stop charging for equipment. just do better job at promotion and advertising all together.

 

[Rebollos]

How many of those 10.000 left because of GOLTV.......lol

 

[VinceT3]

I know there's a number of us in the same boat, being very tempted to call it a day with Dish because of all the bs they pull.. I know my wife has mentioned a few times how much she hates the certain "features" (aka bugs) in the dish software.. she's asked a few times if directv is as bad..

 

[Skyhi]

Now would be a good time to issue a press release announcing the launch of some new channels

 

[HDRoberts]

Now would be a good time to issue a press release announcing the launch of some new channels

A surprise would be nice, but after Friday's debacle, I'm not getting my hopes up.

Sadly, it seems Charlie's only plan is to blame the economy and renounce any responsibility. Thus, he can just sit back, waiting for the economy to be fixed and not have to enact any corrective measures of his own.

I asked in the Pub, but no one ever responded: someone with the right equipment and software want to check the TMP/"PPV" HDs currently uplinked but not available to see if any have video streams? There are 12, 8 PPV and 4 others. It would be nice to know for sure if at least how much stuff is being tested.

 

[cosmo_kramer]

Now would be a good time to issue a press release announcing the launch of some new channels

Screw the press release, how about actually launching some??

 

[pdxsam]

Charlie's other crutch is piracy. Most people who pirate satellite tv are not going to subscribe to it if they lock down the system.

Let's lay down the crutch Charlie and admit you've lost control of the company. Take your billions and hire a new Chairman and new CEO's to run the companies the right way.

 

[tigerfan33]

A surprise would be nice, but after Friday's debacle, I'm not getting my hopes up.

Sadly, it seems Charlie's only plan is to blame the economy and renounce any responsibility. Thus, he can just sit back, waiting for the economy to be fixed and not have to enact any corrective measures of his own.

I asked in the Pub, but no one ever responded: someone with the right equipment and software want to check the TMP/"PPV" HDs currently uplinked but not available to see if any have video streams? There are 12, 8 PPV and 4 others. It would be nice to know for sure if at least how much stuff is being tested.

http://www.satelliteguys.us/1583413-post1.html

 

[VinceT3]

Dish has several issues..

bad customer service - this isn't just CS's unable to answer questions.. this includes taking down channels without notice.. the audit department (call me once accusing me of anything and I'm as good as gone).. etc

software updates - most cause more issues than they fix..

to many supported hardware platforms - lets keep it simple 2-3 boxes with similar hardware and get the others off the market, so your software group can focus and not be split among 20+ hardware platforms.. features would be easier to add.. also take a chapter from microsoft's xbox group and make the features easier to deploy so you don't have to roll out and entire update to get VOD working..

Price - the gouging has gotten worse every year I've been with dish.. take a look at directv, people are signing up for more premiums, where dish customers are trying to figure out how to limit the additional fees..

I can keep going on, but would it matter Charlie doesn't seem to listen to anyone especially not his customers..

 

[RandallA]

"Thus, he can just sit back, waiting for the economy to be fixed and not have to enact any corrective measures of his own. "

If they don't correct their poor management soon, it might be too late for Dish Network.

 

[rad]

If it was the economy then DirecTV's numbers (which came out last week) would have been bad as well.

Its not the poor economy, its poor managment at Dish Network.

From the 10Q

"DISH Network® gross subscriber additions may continue to decrease and subscriber turnover may continue to increase, in each case due to a variety of factors, such as increasing competition and worsening economic conditions, which are outside of our control, and other factors, such as our own operational inefficiencies and levels of customer satisfaction with our products and services, which are within our control, that would require significant investments and expenditures to overcome, which may have a material adverse effect on our results of operations and financial condition."

Well, at least they added a laundry list of other factors besides the economy.

 

[HDRoberts]

http://www.satelliteguys.us/1583413-post1.html

Thanks so much, must have missed that.

The 4 feeds on 16 look promising. The others show don't seem to be pulling too much bandwidth for HD channels, even for an upconvert, particularly the one on TP 21. The ones on TP 27 are a little more promising, but still very low, particularly since those, as PPV, shoule be actual HD.

I'd say it doens't look like a whole lot is coming.

 

[tfultz]

How many of those 10.000 left because of GOLTV.......lol

At least one person I know did.

 

[Jim S.]

Dish focuses on the low-end consumer

I think that's the problem. They weren't focusing on the low-end consumer when they had Voom, but then they got rid of it and put up channels that weren't even full-time HD. Now they're still turning away high-end customers by not fixing the LIL HD audio problem. (Here's a hint: it wasn't always like that, so REVERT TO THE PRIOR SOFTWARE so your customers can USE WHAT THEY'RE PAYING FOR and then use a test channel to work on the problem.)