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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
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-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; kerry.grace@ dowjones.com
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(END) Dow Jones Newswires 11-10-08 0706ET Copyright (c) 2008 Dow Jones & Company, Inc.