Dish Network 1st Quarter 2023 Earning Call

[nelson61]

The first quarter earnings call starts Monday, May 8 at 12PM

DISH TV

DISH Network has served as a disruptive force, driving innovation and value on behalf of consumers. The company provides television entertainment and award-winning technology to millions of customers with its satellite DISH TV and streaming SLING TV services. In 2020, the company became a...

about.dish.com

Live webcast coverage (when the event begins) can been seen here.

https://c212.net/c/link/?t=0&l=en&o=3854292-1&h=2041464825&u=https%3A%2F%2Fc212.net%2Fc%2Flink%2F%3Ft%3D0%26l%3Den%26o%3D2794196-1%26h%3D1792024240%26u%3Dhttp%253A%252F%252Fir.dish.com%252F%26a%3Dhttp%253A%252F%252Fir.dish.com&a=http%3A%2F%2Fir.dish.com

This one will likely be lively with analyst questions about the Dish TV hack affect on expenses and customer base along with the continuing rise in interest rates (Dish took on piles of relatively cheap debt for their wireless service which may be rolling over).

 

[MikeD-C05]

DISH probably suffered a lot of profit loss over the hacking and the damage done to them while it was going on. I look for lower profits.

 

[Bruce]

Just wow-

ENGLEWOOD, Colo., May 8, 2023 /PRNewswire/ -- DISH Network Corporation (NASDAQ: DISH) reported revenue totaling $3.96 billion for the quarter ending March 31, 2023, compared to $4.33 billion for the corresponding period in 2022.

Net income attributable to DISH Network totaled $223 million for the first quarter 2023, compared to $433 million for the year-ago quarter.

Diluted earnings per share were $0.35 for the first quarter, compared to $0.68 per share during the same period in 2022.

Pay-TV
Net pay-TV subscribers decreased approximately 552,000 in the first quarter, compared to a decrease of approximately 462,000 in the year-ago quarter.

The company closed the quarter with 9.20 million pay-TV subscribers, including 7.10 million DISH TV subscribers and 2.10 million SLING TV subscribers.

DISH Network Reports First Quarter 2023 Financial Results

DISH Network Corporation (NASDAQ: DISH) reported revenue totaling $3.96 billion for the quarter ending March 31, 2023, compared to $4.33 billion for the corresponding period in 2022. Net income...

about.dish.com

 

[Bruce]

DISH probably suffered a lot of profit loss over the hacking and the damage done to them while it was going on. I look for lower profits.

Doubtful, while they could not process new sales during March, they also could not process cancellations either, and those canceling have been more then those adding service for awhile now, for all Traditional (Cable/Satellite) Providers.

But Dish's loss is still less then Comcast and probably DirecTV, which is estimated to be 750,000 with the loss of ST.

As far as the cost of the hack itself, as far as we know, they could of had a form of insurance that covered it, or not, those questions will hopefully answered today.

 

[telstar_1]

They're losing subs at a clip faster than they ever got them back in the boom times.

They couldn't activate anyone for a month?

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[RobbyNJ]

They're losing subs at a clip faster than they ever got them back in the boom times.

They couldn't activate anyone for a month?

People really couldn't cancel either. Lots of people only have DSL or satellite internet which really can't stream (or not well). Only alternative is DirectTV. Nowhere for these customers to go except DirectTV. DISH is cheaper then Direct. The competitor is continued broadband buildout to rural areas and better Musk Internet.

 

[nelson61]

Link to the SEC 1st quarter 2023 10K

Inline XBRL Viewer

 

[nelson61]

From 10 K
Satellite Under Construction



EchoStar XXV. On March 20, 2023, we entered into a contract with Maxar Space LLC for the construction of EchoStar XXV, a DBS satellite that is capable of providing service to the continental United States ("CONUS") and is intended to be used at the 110 degree orbital location. This satellite is expected to be launched during 2026.

 

[navychop]

Slow.

 

[nelson61]

We have invested a total of over $30 billion to acquire certain Wireless spectrum licenses. These Wireless spectrum licenses are subject to certain interim and final build-out requirements, as well as certain renewal requirements. We plan to commercialize our Wireless spectrum licenses through the completion of the nation's first cloud-native, Open Radio Access Network ("O-RAN") based 5G network (our "5G Network Deployment"). We have committed to deploy a facilities-based 5G broadband network capable of serving increasingly larger portions of the U.S. population at different deadlines, including 20% of the U.S. population by June 2022 and 70% of the U.S. population by June 2023. If by June 2023, we are offering 5G broadband service to at least 50% of the U.S. population but less than 70% of the U.S. population, the 70% June 2023 deadline will be extended automatically to June 2025; however, as a result, we may, under certain circumstances, potentially be subject to certain penalties. On June 14, 2022, we announced we had successfully reached our 20% population coverage requirement. We are currently focused on our progression towards offering 5G broadband service to at least 70% of the U.S. population with a minimum of 15,000 5G sites. As of March 31, 2023, we had started construction on over 18,000 5G cell sites. We will need approximately 16,000 sites fully powered and fibered to provide 5G broadband service to over 70% of the U.S. population.

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[nelson61]

The Hack

On February 28, 2023, we further disclosed that certain data had been extracted from our IT systems as part of this incident. Our investigation into the extent of the incident is now substantially completed. We have determined that our customer databases were not accessed in this incident. However, we have confirmed that certain employee-related records as well as a limited number of other records containing personal information were among the data extracted. We have taken steps to protect the affected records and personal information, and we received confirmation that the extracted data has been deleted. While we have no evidence that this data has been misused, we have started the process of notifying individuals whose data was extracted.

 

[nelson61]

During the quarter ending March 31, 2023, we incurred certain cyber-security-related expenses, including, but not limited to, costs to remediate the incident and provide additional customer support. During the three months ended March 31, 2023, we have incurred approximately $30 million in cyber-security-related expenses, which are recorded in "Cost of services" on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We do not expect to incur material expenses in future periods resulting from the cyber-security incident.

 

[RobbyNJ]

The Hack

On February 28, 2023, we further disclosed that certain data had been extracted from our IT systems as part of this incident. Our investigation into the extent of the incident is now substantially completed. We have determined that our customer databases were not accessed in this incident. However, we have confirmed that certain employee-related records as well as a limited number of other records containing personal information were among the data extracted. We have taken steps to protect the affected records and personal information, and we received confirmation that the extracted data has been deleted. While we have no evidence that this data has been misused, we have started the process of notifying individuals whose data was extracted.

Accessed was the wrong word. They mean exfiltrated. The data was accessed, hence the systems going down and encrypted data. Systems being off-line for a nearly a month. Maybe they blocked FTP ports and locked internet. They used Mcafee for endpoint protection. They switch to something else.

 

[Bruce]

DISH probably suffered a lot of profit loss over the hacking and the damage done to them while it was going on. I look for lower profits.

From the form-During the three months ended March 31, 2023, we have incurred approximately $30 million in cyber-security-related expenses, which are recorded in "Cost of services" on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We do not expect to incur material expenses in future periods resulting from the cyber-

 

[RobbyNJ]

From the form-During the three months ended March 31, 2023, we have incurred approximately $30 million in cyber-security-related expenses, which are recorded in "Cost of services" on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We do not expect to incur material expenses in future periods resulting from the cyber-

Cyber Insurance paid remediation. Ransom was on them. Might have been 30m to have them delete the data. Hence the confirmation. Never pay the ransom. Black Basta posts the HR related stuff to demonstrate what they have as a sample. I would put a credit freeze with the credit companies if you gave them social etc. It's free.

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[MikeD-C05]

They're losing subs at a clip faster than they ever got them back in the boom times.

They couldn't activate anyone for a month?

At the rate of cable /satellite losses we might be at the non profitable stage, sooner rather than later. I thought we had till the end of the decade, but I think it will happen in the next 5 years now. Especially since funding for more broadband is in the Infrastructure Act they passed last part of 2021. The more people with broadband the more will try streaming as a a cheaper model. Especially since neither Satellite or Cable has learned that people don't like extra fees like additional receiver fees and DVR fees on their bills, when the programming continues to go up every year. That is simply not sustainable over the long haul.

 

[Bruce]

Cyber Insurance paid remediation. Ransom was on them. Might have been 30m to have them delete the data. Hence the confirmation. Never pay the ransom. Black Basta posts the HR related stuff to demonstrate what they have as a sample. I would put a credit freeze with the credit companies if you gave them social etc. It's free.

I pay for all the streaming services with Gift Cards, the advantage is not one has my credit card # and none of them has my SS# or asked for it.

 

[nelson61]

The audio of the call is available for a couple days - about an hour and well worth listening.

echostar 25 - things get old and you need spares for insurance. And the rural tv market is still a good business

Money - they are strapped for cash and freely state they are threading the needle to make it.

The market is pricing their existing debt to pay 20 percent return - which effectively means they can't borrow more.
They hinted that a billion dollars coming due next year could convert to share ownership.

They say the market is pricing them as a glass 90 percent empty while they believe the glass is more than half full.
They were evasive when asked if they would sell spectrum to raise money - saying they expect postpaid phones to start pumping significant money into the balance sheet this year.

They expect to hit the FCC 70 percent market requirement by the drop dead date - end of june - and then pause on new markets to reduce capital expenditures while they go back and fill in dead areas in the covered zones. They will return to finish the remaining 30 percent in late 24 or 25.

They say the hack was a non-event for the financials and expect no lingering effects.

Their Boost prepaid supports Iphone but postpaid does not.
They expect postpaid Iphones will be available later this year which will significantly add income to the Boost segment.

 

[Josephinelcajon]

Here's Why Dish Just Lost Over Half a Million Subscribers

 

[navychop]

Again, it wants me to use the msn app. Ain't gonna happen.

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