DISH Network Reports Year End 2012 Financial Results

Slamminc11

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Jan 28, 2005
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DISH Network Reports Year End 2012 Financial Results

• 2012 gross new pay-TV subscriber additions increase 6.3 percent relative to 2011
• Pay-TV churn decreases to 1.57 percent in 2012 from 1.63 percent in 2011
• Full-year net income of $637 million impacted by legal settlement, increased programming costs

ENGLEWOOD, Colo.--(BUSINESS WIRE)-- DISH Network Corporation (NASDAQ: DISH) today reported 2012 total revenue of $14.27 billion compared to $14.05 billion in 2011, an increase of 1.6 percent. Net income attributable to DISH Network in 2012 was $637 million compared to $1.52 billion in 2011. Diluted earnings per share were $1.41 in 2012, compared with $3.39 in 2011.

Total revenue for the fourth quarter 2012 was $3.59 billion, compared to revenues of $3.63 billion in the year-ago quarter. Net income attributable to the fourth quarter was $209 million compared to $313 million in the fourth quarter of 2011.

The decrease in the full-year net income was due to higher subscriber-related expenses driven by programming costs, increased subscriber acquisition costs from higher gross additions, as well as certain one-time items, including the Voom litigation settlement expense. Additionally, the decrease in year-over-year net income was affected by the 2011 reversal of accrued expenses related to the company's TiVo litigation.

"In addition to the landmark introductions of our Hopper Whole-Home HD DVR, the successful launch of dishNET and the developments with our wireless spectrum, one of our key stories of the year was the change in our customer trajectory," said Joseph P. Clayton, DISH president and CEO. "During 2012, DISH added about 89,000 net pay-TV subscribers after having lost approximately 166,000 net pay-TV subscribers in 2011."

For the full year, DISH added about 2.739 million gross new pay-TV subscriber activations compared to 2.576 million gross new pay-TV subscriber activations in 2011. The company added about 14,000 net new pay-TV subscribers in the fourth quarter of 2012. DISH ended 2012 with 14.056 million pay-TV subscribers compared to 13.967 million total subscribers in 2011.

Pay-TV subscriber churn rate for 2012 decreased to 1.57 percent, an improvement over the 1.63 percent rate in 2011.

DISH also added about 78,000 net broadband subscribers in 2012, compared to a loss of approximately 5,000 subscribers in 2011.

Detailed financial data and other information are available in DISH Network's Form 10-K for the year ended Dec. 31, 2012, filed today with the Securities and Exchange Commission.

DISH Network will host its fourth quarter and full-year 2012 financial results conference call today at noon ET. The dial-in number is (800) 616-6729.
 
Looks like some good news. I think across the board with all providers the days of big sub adds are not happening now its focusing on keeping your customers
 
Looks like some good news. I think across the board with all providers the days of big sub adds are not happening now its focusing on keeping your customers

Which is why DISH offered so many Freebie offers to existing customers last year to keep us with them. I know I got many of them and a FREE Roku too last year.
 
Positive is better than negative. I like both Directv and Dish, and I can say since my changeover to the Hopper setup from the HR34, Ive been very happy. Not that there was a problem with the HR34, I just overall prefer the Hopper. There are some quirks, but I'll stick with satellite over cable (in my area) any day.
 
And,with $5-$15 increases 2013 should really fatten their profit margin.I will say I'm glad to see them concentrating on customer retention.
 
Which is why DISH offered so many Freebie offers to existing customers last year to keep us with them. I know I got many of them and a FREE Roku too last year.

It is a lot cheaper to give out a RoKu and a few dollars a month for a few months to keep someone during a programming dispute rather than having to get a new sub which costs them a hopper/joey(s) and installation plus discounts.
 
I think the increased price of programming every year is causing more & more cord cutting. Combine that with the younger generation not even subscribing to cable/satellite programming at all ,and using only internet for their programming and you see a model that is lucky just to stay even and not lose any subs at all. If Directv didn't have south America for new subs with their Latin service ,which they add to their U.S. numbers, I am betting that they too, would be showing either no growth or even a loss of subs. Something has to change to keep this a viable service. I think Ala cart or Sports FREE packs , or even theme packs would be the way to go. IF not I don't see satellite even being relevant in another ten years ,except in rural areas without cable or ota service.
 
All I know is The Hopper and its awesomeness swayed my wife and I from Direct! We did wait till some local programming disputes were settled and waited and waited for AMC to be back. No way we were going to jump and no Walking Dead, Breaking Bad and so on. Anyway we are very happy with Dish and both of our Hoppers.
 

Thinking of going to Dish

Hopper Update Stuck

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