DISH Network Reports Second Quarter 2013 Financial Results

[Scott Greczkowski]

DISH Network Reports Second Quarter 2013 Financial Results

YOY subscriber-related revenue improves 5 percent
Net loss driven by $438 million of impairment charges on satellites acquired through TerreStar, DBSD transactions
Pay-TV ARPU increases more than 4 percent YOY
Broadband subscriber base grows 24 percent sequentially

ENGLEWOOD, Colo.--(BUSINESS WIRE [3])--DISH Network Corporation (NASDAQ: DISH) today reported revenue totaling $3.61 billion for the quarter ending June 30, 2013, compared to $3.57 billion for the corresponding period in 2012. Subscriber-related revenue increased 4.9 percent to $3.46 billion from $3.30 billion in the year-ago period.

Net loss attributable to DISH Network totaled $(11) million for the quarter ending June 30, 2013, compared to $226 million in net income earned in the year-ago quarter. Diluted loss per share was $(0.02), compared with earnings per share of $0.50 during the same period in 2012. Net income attributable to DISH Network in the quarter was impacted by the $438 million impairment of two of the three satellites acquired through the TerreStar and DBSD transactions.

“We are pleased to see continued growth in Hopper® receiver take rates, as well as growth in broadband-connected subscribers,” said Joseph P. Clayton, DISH president and CEO. “This performance reflects efforts like our DISH Anywhere™ mobile app and our iPad 2 promotion with Apple, and will set the stage for long-range revenue performance.”

Pay-TV ARPU for the second quarter totaled $80.90 compared to the year-ago period’s pay-TV ARPU of $77.59. Pay-TV subscriber churn rate increased to 1.67 percent versus 1.60 percent for second quarter 2012, impacted by DISH’s first programming package price increase in two years.

DISH added approximately 624,000 gross new pay-TV subscribers compared to approximately 665,000 gross new pay-TV subscribers in the prior year’s second quarter. Total subscribers declined approximately 78,000 in the second quarter. The company ended the second quarter with 14.014 million pay-TV subscribers compared to 14.061 million pay-TV subscribers at the end of second quarter 2012.

DISH added approximately 61,000 net broadband subscribers in the second quarter, bringing its broadband subscriber base to approximately 310,000, a 24 percent increase sequentially. DISH added approximately 11,000 net broadband subscribers in the second quarter of 2012.

Year-to-Date Review

DISH Network's first half revenues of $7.16 billion increased 0.1 percent over $7.15 billion in revenue from the same period last year. In the first six months of 2013, net income attributable to DISH Network totaled $205 million compared with $586 million during the same period last year. Diluted earnings per share were $0.45 for the first six months of 2013, compared with $1.30 during the same period in 2012.

Detailed financial data and other information are available in DISH Network's Form 10-Q for the quarter ended June 30, 2013, filed today with the Securities and Exchange Commission.

DISH Network will host its second quarter 2013 financial results conference call today at noon ET. The dial-in numbers are (800) 616-6729 (U.S.) and (763) 488-9145, conference ID number 18183282.

 

[navychop]

Net subs loss. I didn't expect that.

Sent from my iPhone using SatelliteGuys

 

[TheKrell]

Me neither.

 

[Mochuf]

Net subs loss. I didn't expect that.

Sent from my iPhone using SatelliteGuys

I wonder if DirecTV experienced a net sub loss too? In my area, both U-Verse and Comcast have been very aggressive with their deals. ATT has been offering 24 months of discounts (around 25 - 33% off their triple bundles) with only a 12 month commitment. I was offered a bundle which had U300 tv for 3 tv's (HD WHDVR), 18/1.5 internet and unlimited phone for $136 (including all equipment, but not taxes and fees).

 

[gadgtfreek]

But if I read that right they are making $3 more a sub than last year?

 

[Mochuf]

But if I read that right they are making $3 more a sub than last year?

Which might explain the subscriber losses.

 

[gadgtfreek]

Yeah, but it reminds me of Directv's plan years ago. Weed out the subs, and make more $$$ per sub.

 

[Tampa8]

Well that is exactly what DISH has been doing and not just recently, not just by my thinking Charlie said so a while back. Still I would have thought a gain in subscribers.

 

[gadgtfreek]

Can't blame em. But, if you are going that right, keep my channels on...

 

[Mochuf]

Well that is exactly what DISH has been doing and not just recently, not just by my thinking Charlie said so a while back. Still I would have thought a gain in subscribers.

Sooner or later, you're going to lose customers and that income at a faster rate than you can get money from the ones who remain. I don't know what that magic number is or when it will happen. But it will and satellite providers are more susceptible to it than the wireline providers, simply because satellite providers can't offer a reasonable internet package (I wouldn't call satellite internet reasonable with it's large pings and low caps).

 

[satjay]

Will be interesting to read over the conference call notes

 

[dangue]

But if I read that right they are making $3 more a sub than last year?

That's revenue, doesn't mean they're pocketing the additional $3, their costs could have also gone up.

 

[Scott Greczkowski]

For those who wish to listen to the call in with Charlie you can listen at http://seekingalpha.com/article/160...ults-webcast?source=email_rt_article_readmore

I won't be able to listen until later so hopefully someone can posts any good tidbits as they happen here.

 

[satjay]

For those who wish to listen to the call in with Charlie you can listen at http://seekingalpha.com/article/1607042-dish-network-corp-dish-management-discusses-q2-2013-results-webcast?source=email_rt_article_readmore

I won't be able to listen until later so hopefully someone can posts any good tidbits as they happen here.

I will try to tune in at 12 (what better way to spend your lunch hour) and see what is said

 

[gadgtfreek]

That's revenue, doesn't mean they're pocketing the additional $3, their costs could have also gone up.

Understood, but, part of those "costs" should be factored into contracts. At the end of the day, I pay them a lot of money every month, I want my channels

 

[Tampa8]

Sooner or later, you're going to lose customers and that income at a faster rate than you can get money from the ones who remain. I don't know what that magic number is or when it will happen.

Agreed, no question about it. For now DISH is saying we are better with customers who pay and cost us less. Often happens in bad financial times when businesses are more looking to stay viable rather than expand. But I think DISH must realize at some point they need more customers, less churn and to grow.

 

[JimWH]

Well that is exactly what DISH has been doing and not just recently, not just by my thinking Charlie said so a while back. Still I would have thought a gain in subscribers.

Taken to its logical end this is the Steve Martin business model; sell one concert ticket for a million dollars.

 

[Teehar]

Doesn't surprise me about subscriber loss.It's going to get worse,the biggest reason is cord cutting.There is a lot of cheaper alternatives out there,and they keep coming.Broadband is also expanding,it won't be just Dish taking the hit either.

 

[wallyhts]

My take away.

The calls are always better when charlie is on.

• Talked about Directv Merger. (Thinks its different now and could happen)
• Closing Another 100 BB stores by Oct 2013.
• Disney deal either it happens or they are walking and lowering there package prices. (No Sports said it would hurt in the short term but would allow growth in the future)
• Charlie spoke about playing in the dirt pit for Light Squared said he's not included in dish meetings because of him buying Light Squared debt.
• T-mobile only one left "Duh" however he did say if they can't make the wireless thing work they will sell the spectrum.

 

[gadgtfreek]

Hmmmm, 3rd point has me a little concerned. I'm glad they have a stance and talked about it, because I know what Ill have to do. I need ESPN, so if that stuff drops I guess my next move would be to call Directv.