DISH Network Reports Second Quarter 2010 Financial Results

[Scott Greczkowski]

DISH Network Reports Second Quarter 2010 Financial Results

ENGLEWOOD, Colo., Aug 09, 2010 /PRNewswire via COMTEX News Network/ -- DISH Network Corporation (Nasdaq: DISH) today reported total revenue of $3.17 billion for the quarter ended June 30, 2010, a 9.1 percent increase compared with $2.90 billion for the corresponding period in 2009.

Net income attributable to common shareholders totaled $257 million for the quarter ended June 30, 2010, compared with $63 million during the corresponding period in 2009. Basic earnings per share were $0.57 for the quarter ended June 30, 2010, compared with basic earnings per share of $0.14 during the corresponding period in 2009.

DISH Network lost approximately 19,000 net subscribers during the quarter ended June 30, 2010, ending the quarter with approximately 14.318 million subscribers.

Detailed financial data and other information are available in DISH Network's Form 10-Q for the quarterly period ended June 30, 2010, filed today with the Securities and Exchange Commission.

 

[bobvick]

Looks like the new fees have helped earnings, at the expense of new subscriber growth. I guess that Charlie is happy for right now with Dish Network, although Echostar showed a net loss for the same period. I doubt that they will re-evaluate the fee structre until subscriber losses begin to effect net earnings.

 

[mike123abc]

Maybe someone at Dish will wake up and smell the sub loss. Remember all the loyalty credits went through the end of last quarter. Now they have subs with a lot higher bills that will be rolling off 2 year contracts. DIRECTV added 100k subs in the US last quarter vs Dish's loss of 19k. DIRECTV profits $543 million vs Dish's $257 million. Overall subs DTV(US) 18.76 million vs 14.31. They used to only be a couple million apart.

 

[mooneye14]

Looks like the new fees have helped earnings, at the expense of new subscriber growth. I guess that Charlie is happy for right now with Dish Network, although Echostar showed a net loss for the same period. I doubt that they will re-evaluate the fee structre until subscriber losses begin to effect net earnings.

Churn increased a lot and is way way higher than Directv right now.

 

[KAB]

Overall subs DTV(US) 18.76 million vs 14.31. They used to only be a couple million apart.

I think they've always been +/- 5 million apart.

 

[whatchel1]

1%

19000 churn is only a little bit more than 1.5% of the total subs. So don't see that as a tipping point for changing the fees. It won't happen because of this. It also shows in comparison to D* that it was only a small % of those that went w/ them. Looks like the fees will most likely be staying. Look for D* to take note and they may increase theirs as well.

 

[RandallA]

Here is the 10k report:

EchoStar Communications Corporation - Quarterly Report

Next quarter is the one to watch for the loss of subscribers. I didn't expect them to lose subscribers this quarter.

 

[tstolze]

19000 churn is only a little bit more than 1.5% of the total subs. So don't see that as a tipping point for changing the fees. It won't happen because of this. It also shows in comparison to D* that it was only a small % of those that went w/ them. Looks like the fees will most likely be staying. Look for D* to take note and they may increase theirs as well.

I think we are looking closer to .13%

1% is 143180

 

[Laddyboy]

Here is the 10k report:

EchoStar Communications Corporation - Quarterly Report

Next quarter is the one to watch for the loss of subscribers. I didn't expect them to lose subscribers this quarter.

19,000 net loss is pretty much standstill/no change. That they didn't add any net subs when D* did pretty well says something. I agree that sub losses would be expected to start to show up in the 3rd quarter after all the legacy ease-in discounts have ended. We've seen quite a few defections in the forum this quarter. E* may not lose many subs, just some of the higher paying ones with multiple receiver and whole house DVR needs. E*'s fooling around with the 922 isn't helping any. They can't seem to do anything right with that receiver. They'd better get a whole house solution in place pretty darn quick. I'd be embarrassed if I was in management there and couldn't get the job done. If this was a tech company like the ones I used to work for, there would have already been people cashiered.

 

[Scott Greczkowski]

This quarters numbers surprised me. I expected losses like this for the next report... and that tells me if things are this bad now they are going to be much worse next quarter.

DISH Network needs to do a few things...

1) Work with programmers, why does EVERYTHING lately with DISH have to end up in a lawsuit? Keep your partners happy and you will have the programming your PAYING customers want! DISH has been such a prick to its programmers that the p rogrammers dont want to talk anymore... no company should have a relationship like that with their PARTNERS.

2) Get rid of the god damn audit team. Stop treating your paying customers as criminals... sure some are stacking but at least your getting PAID. The word of mouth alone is costing DISH customers

3) Communicate with us and not these BS marketing fluff that we get on the Charlie Chats... Sites like SatelliteGuys are here to discuss and support the satellite industry. Let us help you support your customers which in turn saves you calls and possibly even churn.

4) Admit when you have a problem! Look since last week Sling has been down as so has DISH Remote Access... have you seen any mention of this issue from DISH? Hell those of us with 922's pay MORE per month to have these services and they are not working and DISH is acting like nobody has a problem.

5) Enough with the fees, while I don't see DISH lowering the equipment fees as anyone who was upset about the changes have already left or downgraded their programming. Enough is enough already. Your bleeding some of your highest grossing customers dry, are you trying to scare them away?

DISH needs to take a look at their company from the eyes of their customers. WHy they are trying to do one thing it looks another way to the folks that really matter... Their customers.

 

[Greg Bimson]

19000 churn is only a little bit more than 1.5% of the total subs. So don't see that as a tipping point for changing the fees. It won't happen because of this. It also shows in comparison to D* that it was only a small % of those that went w/ them. Looks like the fees will most likely be staying.

whatchel1, you've forgotten the definition of churn.

The financials tell a tale...

During the quarter, Dish Network added 747,000 subscribers. During the quarter, Dish Network also lost 766,000 subscribers. The monthly churn was 1.78 percent.

The issue here is the kind of subscribers that make up the new subscriber additions. It costs Dish Network about $740 to signup a new subscriber, and if more subscribers are leaving than signing on, Dish Network needs to implement a stop-loss plan.

 

[ERSanders]

Dish's new fee structure has caused me to reevaluate my whole bill.

When the network season begins I will be dropping the Everything (misnomer) Package and just subscribing to 250 + HBO. The primary cause of this reaction is the new DVR fee schedule.

I'd like to say that I will reconsider the Everything Package if they rescind the DVR fee but I probably will not.

 

[Scott Greczkowski]

ERSanders,

I went from AEP down to just AT250 because of the new fees. My wife even asked me if we should look at DIRECTV again...

 

[Laddyboy]

This quarters numbers surprised me. I expected losses like this for the next report... and that tells me if things are this bad now they are going to be much worse next quarter.

DISH Network needs to do a few things...

1) Work with programmers, why does EVERYTHING lately with DISH have to end up in a lawsuit? Keep your partners happy and you will have the programming your PAYING customers want! DISH has been such a prick to its programmers that the p rogrammers dont want to talk anymore... no company should have a relationship like that with their PARTNERS.

2) Get rid of the god damn audit team. Stop treating your paying customers as criminals... sure some are stacking but at least your getting PAID. The word of mouth alone is costing DISH customers

3) Communicate with us and not these BS marketing fluff that we get on the Charlie Chats... Sites like SatelliteGuys are here to discuss and support the satellite industry. Let us help you support your customers which in turn saves you calls and possibly even churn.

4) Admit when you have a problem! Look since last week Sling has been down as so has DISH Remote Access... have you seen any mention of this issue from DISH? Hell those of us with 922's pay MORE per month to have these services and they are not working and DISH is acting like nobody has a problem.

5) Enough with the fees, while I don't see DISH lowering the equipment fees as anyone who was upset about the changes have already left or downgraded their programming. Enough is enough already. Your bleeding some of your highest grossing customers dry, are you trying to scare them away?

DISH needs to take a look at their company from the eyes of their customers. WHy they are trying to do one thing it looks another way to the folks that really matter... Their customers.

Those are all very good ideas, Scott. Unfortunately, I think E* just doesn't care any longer or at least Charlie and Jim don't take any interest. This same thing happened to Walmart when Sam passed on. It was taken over by professional management with no founder left to step in and say "wait a minute." Walmart is now a totally different company from the one founded. I think this is what frustrates me and other long time subs that remember what E* used to be like. E* used to be very sub friendly. It wasn't long ago, Charlie spoke about the cable hogs. His company now has higher DVR fees than any of the cable providers I'm aware of. I no longer recommend E* out of hand. I tell people to compare both services and select the one that gives them the best bang for the buck. It's been a while since anyone I know has gone with E*.

 

[bobvick]

ERSanders,

I went from AEP down to just AT250 because of the new fees. My wife even asked me if we should look at DIRECTV again...

I am not being nosy, or trying to change the subject, but what is the main reason that you have decided to stay with Dish Network? Is the equipment?

 

[larry55]

just wait till the third quarter report and you see how many subs dish will lose.

 

[whatchel1]

In some ways I hope to see them take a bit of a loss so that they will reevaluate their strategy. But not going to go nuts like the Bobsey twins and rant and rave on every thread. At least Gb 99 did go to D* to prove how dissatisfied he was. Tha is the only way to let a company know that it has done something incorrectly.

 

[Dah-Henny]

I like E* a lot, but, I really think a huge churn for the 3rd quarter would be excellent for the company. Why? Because if enough folks defect, if will force Charlie to make changes in favor of the subscriber.

 

[apollog]

As soon as my contract with DN is over, I'm switching to Directv. Go Indy Colts!!!

 

[Scott Greczkowski]

I am not being nosy, or trying to change the subject, but what is the main reason that you have decided to stay with Dish Network? Is the equipment?

Yes its the equipment. I had both DIRECTV and DISH and my wife didn't like the DIRECTV equipment at all.

For me he programming between the two is the same as I only watch 4 channels... Science Channel, Discovery Channel, USA Network and Food Network.