DISH Network Reports First Quarter 2013 Financial Results

[Slamminc11]

DISH Network Reports First Quarter 2013 Financial Results


ENGLEWOOD, Colo.--(BUSINESS WIRE)-- DISH Network Corporation (NASDAQ: DISH) today reported revenue totaling $3.56 billion for the quarter ending March 31, 2013 compared to $3.58 billion for the corresponding period in 2012. The decline was driven by reductions in our Blockbuster segment. During these same periods, subscriber-related revenue for our DISH segment increased from $3.22 billion to $3.35 billion, or 4.0 percent.

Net income attributable to DISH Network totaled $216 million for the quarter ending March 31, 2013, compared to $360 million from the year-ago quarter. The decrease in year-over-year net income was primarily due to higher subscriber-related expenses driven by increased programming and subscriber acquisition costs. Additionally, results from the first quarter 2012 were favorably impacted by a non-cash gain of $99 million related to the conversion of certain DBSD North America notes.

"We have been pleased with the market's response to our Hopper® with Sling® roll out, despite headwinds from our first price increase in two years," said Joseph P. Clayton, DISH president and CEO. "Broadband sales are encouraging, especially given that almost all of our dishNET™ customers have bundled with our pay-TV service."

DISH added about 654,000 gross new pay-TV subscribers compared to approximately 673,000 gross new pay-TV subscribers in the prior year's first quarter. Net subscribers grew by approximately 36,000 in the first quarter. The company closed the first quarter with 14.092 million pay-TV subscribers compared to 14.071 million pay-TV subscribers at the end of first quarter 2012.

Pay-TV ARPU for the first quarter totaled $78.54, an improvement over the first quarter 2012 pay-TV ARPU of $76.24. Pay-TV subscriber churn rate was 1.47 percent versus 1.35 percent for first quarter 2012.

DISH also added about 66,000 net broadband subscribers in the first quarter, compared to the addition of approximately 6,000 broadband subscribers in the year-ago period.

Detailed financial data and other information are available in DISH Network's Form 10-Q for the quarter ended March 31, 2013, filed today with the Securities and Exchange Commission.

 

[satjay]

If I am reading right, added subs not a bad way to start.

 

[Stargazer]

They have to acquire 654,000 subscribers to get a net gain of 36,000 subscribers though. That is a lot of churn. If they quit acquiring as many subscribers they will start losing a lot of customers fast.

 

[gadgtfreek]

Yeah, thats a lot of churn. I think all these new customer deals drive that, jumping from one to the other every 24 months or so.

 

[truckracer]

That's good in this current economy.

 

[Dah-Henny]

Yeah, thats a lot of churn...

Churn at 1.47% is not a lot different than Direct's Q1 churn, which is 1.45%.

 

[nelson61]

Reuters reports how the market reads the news. Somewhat different. http://www.reuters.com/article/2013/05/09/us-dishnetwork-results-idUSBRE9480EV20130509

 

[KAB]

I was not aware they had sold Blockbuster UK. Yet still a burden.

 

[Mochuf]

Churn at 1.47% is not a lot different than Direct's Q1 churn, which is 1.45%.

I have a feeling that most of the churn that D* and E* experience is the same group of people going back and forth between the two of them.

 

[Scherrman]

That's what the majority of all new installs are the last couple years. Just people going back and forth between providers.

 

[MikeD-C05]

So basically the same 100,000 customers are moving back and forth from one sat company to the other. Seems kind of like satellite tv is on the decline if that's the case.

 

[Claude Greiner]

So basically the same 100,000 customers are moving back and forth from one sat company to the other. Seems kind of like satellite tv is on the decline if that's the case.

The problem is that you got u crap and the other phone companies stealing satellite customers left and right. Also the market is pretty much saturated

 

[Mochuf]

The problem is that you got u crap and the other phone companies stealing satellite customers left and right. Also the market is pretty much saturated

I think wireline tv providers offering internet and tv at not much a higher price than tv alone is killing D* and E*. Sure the equipment fees are a shock because they're not included in the advertised prices, but D* and E* are starting to play that game too. That's the main reason Charlie wants to get into wireless, to grab those bundling customers.

 

[Tampa8]

Where are these Cable companies offering a deal where internet added makes it not much more than Dish (or Direct) alone is? When I look at Charter for example, I'm not seeing where I save much of anything with worse PQ and less channels, worse equipment.

REMEMBER - the Charter deal is for new customers the Dish is the regular pricing.......
Charter Triple play Special deal price
All non premium channels $50 ($30 for the triple play price, $20 to get it to the Dish Top250)
Internet (see Dish comparison - same internet service) $30
VOIP minimal features (Compared to what I have) $30
$110 + $20 DVR fees two rooms + $12 for two DVR receivers
TOTAL = $142

Dish REGULAR pricing
TOP250 $75
DVR Fee $7
Two three tuner (with ota) DVR receivers $10
Charter 30 internet $40 (Same service as above)
VoicePulse VOIP service - $15 (far more features than Charter has)
TOTAL = $146

 

[mike123abc]

More and more people are figuring out the switch and save deals. Dish (or someone else) needs a breakthrough idea to hold on to customers. Dish/Sprint is what Dish thinks will deliver a package that other providers will not be able to match.

 

[TheKrell]

If he succeeds in acquiring Sprint (and all that Clearwire spectrum), he will be able to deliver a package that nobody else can match. Mike White's recent remarks about remaining a sat company forever was a smokescreen for his stockholders.

 

[Mochuf]

Where are these Cable companies offering a deal where internet added makes it not much more than Dish (or Direct) alone is? When I look at Charter for example, I'm not seeing where I save much of anything with worse PQ and less channels, worse equipment.

REMEMBER - the Charter deal is for new customers the Dish is the regular pricing.......
Charter Triple play Special deal price
All non premium channels $50 ($30 for the triple play price, $20 to get it to the Dish Top250)
Internet (see Dish comparison - same internet service) $30
VOIP minimal features (Compared to what I have) $30
$110 + $20 DVR fees two rooms + $12 for two DVR receivers
TOTAL = $142

Dish REGULAR pricing
TOP250 $75
DVR Fee $7
Two three tuner (with ota) DVR receivers $10
Charter 30 internet $40 (Same service as above)
VoicePulse VOIP service - $15 (far more features than Charter has)
TOTAL = $146

Here is a comparison from where I live. This is all non-promo pricing.

Dish
AT200: $64.99
BB@Home: $10.00
722K DVR: $7.00
TOTAL: $81.99
Wide Open West
15/2 internet plus
Advanced Phone: $70.00

Total: $151.99 before taxes.

Wide Open West
Ultra Signature Package
(15/2 internet, advanced phone
and 6-tuner WHDVR with 2 outlets): $125.00 (TV adds $55) before taxes.

These packages are pretty similar when you look at them with the exception of sports. WOW doesn't have the league channels (i.e. NFL, MLB, NHL, NBA). Signature includes all Encore and Starz channels.

Comcast Blast internet (50/10): $74.99 with your own modem
Comcast Blast Plus: 50/10 internet, Digital Economy tv with HBO and Streampix: $79.99 ($89.94 HD) with own modem, Comcast supplies the first stb for free. I could use my Tivo with this package as the dvr.

Couple of examples where bundling lowers costs or doesn't raise them by much. There's more if I wanted to dig into it.

I'm seriously thinking about going to the "evil empire" by dropping WOW and switching to Blast Plus and getting Ooma for phone. 50/10 internet is overkill for us, but man I do want it!

 

[nelson61]

Earnings Call Transcript

Seeking Alpha has the transcript out. http://m.seekingalpha.com/article/1421821 Looks like the Hopper/Joey is doing better than anticipated and is affecting subscriber acquisition costs and increasing box replacement costs. But, they say the service fees will start to kick in on the balance sheet in the latter half of the year.

 

[Claude Greiner]

The problem with Sprint, and clear is that people aint gonna put up with a capped data allowance at 10 Gigs.

The speeds are there with 4 G, but the data allowance is un accecptable.

 

[navychop]

I think Dish has some pretty good ideas for keeping customers "sticky" with EHD collections, Dish Anywhere and iPad transfers from the Hopper.

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