DISH Network Reports Second Quarter 2009 Financial Results

[Scott Greczkowski]

DISH Network Reports Second Quarter 2009 Financial Results

ENGLEWOOD, Colo., Aug. 10 /PRNewswire-FirstCall/ -- DISH Network Corporation (Nasdaq: DISH) today reported total revenue of $2.904 billion for the quarter ended June 30, 2009, a 0.4 percent decrease compared with $2.915 billion for the corresponding period in 2008.

Net income totaled $63 million for the quarter ended June 30, 2009, compared with $336 million during the corresponding period in 2008. Basic earnings per share were $0.14 for the quarter ended June 30, 2009, compared with basic earnings per share of $0.75 during the corresponding period in 2008.
DISH Network added approximately 26,000 net subscribers during the quarter ended June 30, 2009, ending the quarter with approximately 13.610 million subscribers.

Detailed financial data and other information are available in DISH Network's Form 10-Q for the quarterly period ended June 30, 2009, filed today with the Securities and Exchange Commission.

About DISH Network Corporation
DISH Network Corporation (Nasdaq: DISH), the nation's HD leader, provides approximately 13.610 million satellite TV customers as of June 30, 2009 with the highest quality programming and technology at the best value, including the lowest all-digital price nationwide. Customers have access to hundreds of video and audio channels, the most HD channels, the most international channels, state-of-the-art interactive TV applications, and award-winning HD and DVR technology including 1080p Video on Demand and the ViP((R)) 722 HD DVR, a CNET and PC Magazine "Editors' Choice." DISH Network is included in the Nasdaq-100 Index (NDX) and is a Fortune 250 company. Visit www.dishnetwork.com.

DISH Network will host its Second Quarter 2009 earnings conference call today at noon ET. The dial-in number is (800) 616-6729.

 

[KAB]

So much for the 95,000 loss prediction. Looks like the bleeding has stopped for now.

 

[catnap1972]

So much for the 95,000 loss prediction. Looks like the bleeding has stopped for now.

But they're still harping on that 80+% loss in net income as the sign of impending dooooooooom

 

[tigerfan33]

When was the last time there was a plus on revenue and sub gains for Dish?

We all know this is not happenning due to Dish's great marketing dept!!

 

[Scott Greczkowski]

I believe it's the first time in a year that they have had a gain.

Here's Echostars Release

EchoStar Reports Second Quarter 2009 Financial Results

ENGLEWOOD, CO, Aug 10, 2009 (MARKETWIRE via COMTEX News Network) -- EchoStar Corporation (NASDAQ: SATS) today reported total revenue of $383 million for the quarter ended June 30, 2009, a 20.7 percent decrease compared with $483 million for the corresponding period in 2008.
EchoStar reported a net income attributable to common shareholders of $102 million for the quarter ended June 30, 2009, compared with a net income attributable to common shareholders of $48 million during the corresponding period in 2008. Basic earnings per share was $1.18 for the quarter ended June 30, 2009, compared with basic earnings per share of $0.53 during the corresponding period in 2008.
Detailed financial data and other information are available in EchoStar's Form 10-Q for the quarterly period ended June 30, 2009, filed today with the Securities and Exchange Commission.
EchoStar will host its Second Quarter 2009 financial results conference call today at 1 p.m. ET. The dial-in number is (877) 500-5931.
About EchoStar Corporation
EchoStar Corporation (NASDAQ: SATS) provides equipment sales, digital broadcast operations, and satellite services that enhance today's digital TV lifestyle, including products from Sling Media, Inc., a wholly owned subsidiary. Headquartered in Englewood, Colo., EchoStar has 25 years of experience designing, developing and distributing award-winning television set-top boxes and related products for pay television providers and is creating hardware and service solutions for cable, telco, IPTV and satellite TV companies. EchoStar includes a network of 10 digital broadcast centers and leased fiber optic capacity with points of presence in approximately 160 U.S. cities. EchoStar also delivers satellite services through eight satellites and related FCC licenses. Visit www.echostar.com.

 

[Rey]

not as bad as some thought it would be.

 

[HDRoberts]

Alright, where is RiffJim, time to eat crow.

 

[vaylon]

That net income loss is huge!!!

How did they manage to loose that much net in just a year?

 

[KAB]

That net income loss is huge!!!

How did they manage to loose that much net in just a year?

TIVO, for one.

 

[DIRANONI]

TIVO, for one.

Profit falls (Tivo); net subscribers rise (?)

 

[Roxor]

From AP: "Dish, which concentrates on being a low-cost provider, said its subscriber growth was helped by the digital transition on June 12, the completion of its security access device replacement program and new sales and marketing efforts.The company said its low-cost provider approach has been weakened by competitors' aggressive promotional pricing to draw new subscribers as well as other promotions used to keep existing subscribers. Signal theft and other types of fraud have also hurt its position, but Dish said its security access device replacement program was meant to resecure its system."

 

[bobvick]

That net income loss is huge!!!

How did they manage to loose that much net in just a year?

I hope you realize that this is not a "loss" the way that your post makes it sound. It is a decrease in net income. There is a huge difference.

Additionally, if you will take a look at Dish's Income Statement you will see the following:

Subscriber acquisition costs rose in the Q2 2009 by $108,179,000.00 as comparied to the Q2 2008 number.

Satellite transmission expenses attributable to EchoStar increased nearly $10,000,000.00.

Cost of sales — subscriber promotion subsidies — EchoStar increased to $71,786,000.00 in Q2 2009 from $32,284,000 in Q2 2008.

Also, Subscriber acquisition advertising increased to $68,315,000.00 from $41,359,000.00 in the year earlier period.

SG&A increased by $21,145,000.00 over Q2 of 2008.

And finally, the accrual for Tivo litigation increased from $0 in Q2 2008 to $196,000,000.00 for Q2 2009.

So the whole 81% decrease in net income as compared to the 2nd quarter of last year is a combination of increased expenses, not just Tivo litigation.

 

[Scott Greczkowski]

So basically they are paying more to Echostar for what they use to get for free with no markup. Is that what your saying?

(ie satellite transmission expsenses, hardware costs.. etc)

 

[tigerfan33]

Dish, which concentrates on being a low-cost provider, said its subscriber growth was helped by the digital transition on June 12, the completion of its security access device replacement program and new sales and marketing efforts.

Marketing efforts????

Wrong Dish!!!

 

[digiblur]

More issues with the E12 bird...

EchoStar XII. Prior to 2009, EchoStar XII experienced anomalies resulting in the loss of electrical power available from its solar arrays. During March and May 2009, EchoStar XII experienced more of these anomalies, which further reduced the electrical power available to operate EchoStar XII. We currently operate EchoStar XII in full continental United States (“CONUS”)/spot beam hybrid mode. If we continue to operate the satellite in this mode, as a result of this loss of electrical power, we would be unable to use the full complement of its available transponders for the 12-year design life of the satellite. However, since the number of useable transponders on EchoStar XII depends on, among other things, whether EchoStar XII is operated in CONUS, spot beam, or hybrid CONUS/spot beam mode, we are unable to determine at this time the actual number of transponders that will be available at any given time or how many transponders can be used during the remaining estimated life of the satellite. However, there can be no assurance future anomalies will not cause further losses, which could impact the remaining useful life or commercial operation of EchoStar XII. As a result of the May 2009 anomalies on EchoStar XII, we determined that we had a triggering event related to EchoStar XII. See discussion of evaluation of impairment in “Long-Lived Satellite Assets” below. Based on this triggering event we performed an impairment review of the satellite using an undiscounted cash flow model and concluded that the estimated undiscounted cash flows associated with EchoStar XII were still in excess of its carrying value and therefore no impairment was required.

 

[bobvick]

So basically they are paying more to Echostar for what they use to get for free with no markup. Is that what your saying?

(ie satellite transmission expsenses, hardware costs.. etc)

It sure sounds that way, a Wall Street Journal article notes the following "while former unit EchoStar Corp.'s profit more than doubled on lower expenses."

 

[dmendenjr]

More issues with the E12 bird...

AMC-14's ghost continues to haunt E*

 

[jacmyoung]

It sure sounds that way, a Wall Street Journal article notes the following "while former unit EchoStar Corp.'s profit more than doubled on lower expenses."

So money basically flowed from Charlie's one pocket to the other?

 

[bobvick]

So money basically flowed from Charlie's one pocket to the other?

It seems like Charles is charging Dish more for satellite leases and for stb's to increase EchoStars income, SATS is going higher today than it has been in a while and DISH has went up to over $20 per share as of the last time i looked. Perhaps his strategy is working to push the stock prices higher?

 

[digiblur]

AMC-14's ghost continues to haunt E*

Yep, they wouldn't need to run it in CONUS hybrid mode if E-14's rocket didn't fail.