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Q1 financials


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36 replies to this topic

#1 OFFLINE   harsh

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Posted 10 May 2010 - 08:16 AM

The Q1 results are up:

237,000 net additions (DIRECTV was 100,000) :)
$71.18 ARPU (DIRECTV $85.47) :)
1.40% Churn (DIRECTV 1.48%) :)
$741 SAC (DIRECTV $595) :(

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#2 OFFLINE   RAD

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Posted 10 May 2010 - 08:33 AM

Legal expenses from a long-running patent dispute with TiVo Inc (TIVO.O) over digital video recording technology were $30.2 million in the quarter, compared with nil a year earlier.

From http://www.reuters.c...E6492MW20100510

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#3 OFFLINE   harsh

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Posted 10 May 2010 - 10:57 AM

Legal expenses from a long-running patent dispute with TiVo Inc (TIVO.O) over digital video recording technology were $30.2 million in the quarter, compared with nil a year earlier.

It would be interesting to compare how much licensing fees would have been.

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#4 OFFLINE   BattleZone

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Posted 10 May 2010 - 11:13 AM

Posted Image

Usually Q1 is the busiest time for everyone. Not so this year. The economy didn't help, but at least both companies are still seeing growth.

#5 OFFLINE   Paul Secic

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Posted 10 May 2010 - 12:27 PM

Legal expenses from a long-running patent dispute with TiVo Inc (TIVO.O) over digital video recording technology were $30.2 million in the quarter, compared with nil a year earlier.

From http://www.reuters.c...E6492MW20100510


I still think Charlie should buy Tivo or license it.

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#6 OFFLINE   Stewart Vernon

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Posted 10 May 2010 - 02:08 PM

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ENGLEWOOD, Colo., May 10, 2010 /PRNewswire via COMTEX News Network/ -- DISH Network Corporation (Nasdaq: DISH) today reported total revenue of $3.06 billion for the quarter ended March 31, 2010, a 5.2 percent increase compared with $2.91 billion for the corresponding period in 2009.

Net income attributable to common shareholders totaled $231 million for the quarter ended March 31, 2010, compared with $313 million during the corresponding period in 2009. Basic earnings per share were $0.52 for the quarter ended March 31, 2010, compared with basic earnings per share of $0.70 during the corresponding period in 2009.
DISH Network gained approximately 237,000 net subscribers during the quarter ended March 31, 2010, ending the quarter with approximately 14.337 million subscribers.

Detailed financial data and other information are available in DISH Network's Form 10-Q for the quarterly period ended March 31, 2010, filed today with the Securities and Exchange Commission.

About DISH Network
DISH Network L.L.C., a subsidiary of DISH Network Corporation (NASDAQ: DISH), provides more than 14.3 million satellite TV customers, as of March 31, 2010, 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 722 HD DVR, a CNET and PC Magazine "Editors' Choice." DISH Network Corporation is included in the Nasdaq-100 Index (NDX) and is a Fortune 250 company. Visit www.dish.com.

DISH Network will host its First Quarter 2010 financial results conference call today at noon ET. The dial-in number is (800) 616-6729.

SOURCE DISH Network Corporation
Copyright © 2010 PR Newswire. All rights reserved

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#7 OFFLINE   Bigg

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Posted 10 May 2010 - 02:49 PM

The Q1 results are up:

237,000 net additions (DIRECTV was 100,000) :)
$71.18 ARPU (DIRECTV $85.47) :)
1.40% Churn (DIRECTV 1.48%) :)
$741 SAC (DIRECTV $595) :(


I assume SAC is Subscriber Acquisition Cost? What the heck is up with that?

Dish's DVR is two years old, DirecTV's is brand new. Dish's DVR serves two rooms in one shot, DirecTV needs two DVR's (although some cost is offset by customer fees). Dish has an easier time mounting dishes in the densely-populated (both people and trees) Northeast because of EA, they don't have all the expensive SWiM to deal with, nor Ka/Ku hybrid dishes. Plus, the DP dual-tuner diplexer thingies eliminate the need for new Coax just like DirecTV (at least on a house with halfway acceptable wiring already there). The need for OTA because of incomplete LIL's has nothing to do with this, since that's the customer's problem.

#8 OFFLINE   BattleZone

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Posted 10 May 2010 - 03:41 PM

I assume SAC is Subscriber Acquisition Cost? What the heck is up with that?


Dish's DVR is two years old, DirecTV's is brand new.


The HR24 isn't reflected in Q1 numbers at all, and the 722k isn't 2 years old yet.

Dish's DVR serves two rooms in one shot, DirecTV needs two DVR's (although some cost is offset by customer fees).


True, but Dish's receivers are more expensive.

Dish has an easier time mounting dishes in the densely-populated (both people and trees) Northeast because of EA, they don't have all the expensive SWiM to deal with, nor Ka/Ku hybrid dishes.


DirecTV's dishes only need about 7 degrees of angle with the SL3, while a 1000.2 needs over 20, and a 1000.4 needs about 17. You can get a lot more customers with a narrower window. But none of that has anything to do with SAC. SWM gear is more expensive than legacy, but not likely more than a 1000.2/1000.4 LNB, and certainly not as expensive as, say, a DPP44.


Plus, the DP dual-tuner diplexer thingies eliminate the need for new Coax just like DirecTV (at least on a house with halfway acceptable wiring already there).


That's largely costs borne by the installers, not by DirecTV or Dish.

The need for OTA because of incomplete LIL's has nothing to do with this, since that's the customer's problem.


Again, most of this stuff doesn't have anything to do with SAC. SAC is:

- advertising
- equipment installed
- installation labor
- sales commissions
- discounts and incentives

Dish has been doing more (and better) advertising recently than they've done in the past, and their net subscriber numbers reflect that. But it isn't cheap. DirecTV has reduced their advertising and incentives, and their growth has slowed.

All this just shows that you've got to spend money to make money, though that isn't the only factor in the equation.

#9 OFFLINE   Tom Robertson

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Posted 10 May 2010 - 04:08 PM

The Q1 results are up:

237,000 net additions (DIRECTV was 100,000) :)
$71.18 ARPU (DIRECTV $85.47) :)
1.40% Churn (DIRECTV 1.48%) :)
$741 SAC (DIRECTV $595) :(


ARPU is a DIRECV win. Higher is better. (and a big win for DIRECTV.)

Cheers,
Tom

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#10 OFFLINE   James Long

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Posted 10 May 2010 - 04:34 PM

ARPU is a DIRECV win. Higher is better. (and a big win for DIRECTV.)

I can't remember a quarter where DirecTV didn't have a higher ARPU. Usually it is around $10 more than DISH. With the higher base cost of service and availability of more high priced sports packages it isn't surprising they are pulling in more revenue per subscriber.

The average net profit per subscriber would be a better comparison.

#11 OFFLINE   Bigg

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Posted 10 May 2010 - 04:36 PM

The HR24 isn't reflected in Q1 numbers at all, and the 722k isn't 2 years old yet.

True, but Dish's receivers are more expensive.


I'd doubt that the 722 is that expensive compared to two DirecTV boxes.


DirecTV's dishes only need about 7 degrees of angle with the SL3, while a 1000.2 needs over 20, and a 1000.4 needs about 17. You can get a lot more customers with a narrower window. But none of that has anything to do with SAC. SWM gear is more expensive than legacy, but not likely more than a 1000.2/1000.4 LNB, and certainly not as expensive as, say, a DPP44.


A SWiMLine SL5 ain't cheap. The consumer price of a SWiMLine 5 is $180, the consumer price of a 1000.4 is $90.

Wrong. In Hartford-New Haven, for example, our SD LIL's are on 119, which is 23.2 degrees above the horizon, and is spread 20 degrees horizontally from 99.

Dish's EA, OTOH, has Rainbow 1 at 61.5 providing LIL's, which is 40.9 degrees above the horizon, and that's the lowest point of the EA. 72.5 is 42.2 degrees above the horizon, the highest of any DBS service for this DMA. I know of someone who nLOS'ed a DirecTV install, and had no issue with Dish EA. EA is virtually flat 41 degrees up (slight skew to east), and covers 15.5 degrees.

It has to do with SAC when you're paying an installer to go out and install, and the install doesn't get done because there's nLOS, unless you throw that on the books somewhere else.


That's largely costs borne by the installers, not by DirecTV or Dish.

Again, most of this stuff doesn't have anything to do with SAC. SAC is:

- advertising
- equipment installed
- installation labor
- sales commissions
- discounts and incentives

Dish has been doing more (and better) advertising recently than they've done in the past, and their net subscriber numbers reflect that. But it isn't cheap. DirecTV has reduced their advertising and incentives, and their growth has slowed.

All this just shows that you've got to spend money to make money, though that isn't the only factor in the equation.


Ok, fair enough, advertising is part of it.

ARPU is a DIRECV win. Higher is better. (and a big win for DIRECTV.)

Cheers,
Tom


It's a different strategy. Dish probably has a lot of subs that wouldn't go to DirecTV if, in a hypothetical world, DirecTV was exactly the same as they are now, but Dish didn't exist.

#12 OFFLINE   jerrylove56

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Posted 10 May 2010 - 04:57 PM

It has been stated before that DirecTV has deliberately aimed its marketing and products toward high-end clientele. Average customers with SD sets don’t give a hoot about who has the best HD or 3D programs or gadgets. Instead they look for pricing. So there should be no surprise that Dish gained subscribers in this economy with their aggressive discounts.

I believe that Directs rush to get their 3D service up will not necessarily give them a large increase of subscribers. But I can smell a price/fee increase for 3D service which will become a revenue stream. Just like their MVR service fees.

#13 OFFLINE   cariera

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Posted 10 May 2010 - 05:42 PM

I would just like to say that it is amazing that both Dish and Directv have added net subs in the competitive world that is now made up of Uverse, Fios, Hulu and cut-rate cableco promos. For all the argurments over which company is better, they both must be doing something right to increase the sub base.:)

#14 ONLINE   phrelin

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Posted 10 May 2010 - 05:59 PM

Well, it's an interesting quarter for Dish - higher new subscriber costs seems to correspond to more new subscribers for whatever that's worth.

Echostar Holding's quarterly shows a decent increase in revenue explained as follows:

“Equipment revenue — other” totaled $112 million during the three months ended March 31, 2010, an increase of $55 million or 96.3% compared to the same period in 2009. This change resulted primarily from a $28 million increase in sales to Bell TV and sales of $26 million to Dish Mexico. Although the number of units sold to Bell TV increased, the average revenue per unit to Bell TV decreased compared to the same period in 2009 due to a change in sales mix and as a result of the early 2009 amendment to our agreement with Bell TV, discussed below. The sales to Dish Mexico were in addition to the original commitment associated with our investment in Dish Mexico.

It would have been more informative about the industry if the Echostar/Dish split had not occurred, IMHO.

Both quarterlies contain the following information:

DISHOnline.com Services Agreement. Effective January 1, 2010, DISH Network entered into a two-year agreement with us pursuant to which DISH Network will receive certain services associated with an online video portal. The fees for the services provided under this services agreement depend, among other things, upon the cost to develop and operate such services. DISH Network has the option to renew this agreement for three successive one year terms and the agreement may be terminated for any reason upon 120 days written notice to us.

DISH Remote Access Services Agreement. Effective January 1, 2010, DISH Network entered into an agreement with us pursuant to which DISH Network will receive, among other things, certain remote DVR management services. The fees for the services provided under this services agreement depend, among other things, upon the cost to develop and operate such services. This agreement has a term of five years with automatic renewal for successive one year terms and may be terminated for any reason upon 120 days written notice to us.

SlingService Services Agreement. Effective February 23, 2010, DISH Network entered into an agreement with us pursuant to which DISH Network will receive certain place-shifting services. The fees for the services provided under this services agreement depend, among other things, upon the cost to develop and operate such services. This agreement has a term of five years with automatic renewal for successive one year terms and may be terminated for any reason upon 120 days written notice to us.

So now 922 users particularly know who where to direct their frustration.:sure:

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#15 OFFLINE   ndole

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Posted 11 May 2010 - 07:58 AM

http://news.yahoo.co...ns_dish_network

Interesting tidbit someone forwarded to me this morning.
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#16 OFFLINE   Tom Robertson

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Posted 11 May 2010 - 11:16 AM

I can't remember a quarter where DirecTV didn't have a higher ARPU. Usually it is around $10 more than DISH. With the higher base cost of service and availability of more high priced sports packages it isn't surprising they are pulling in more revenue per subscriber.

The average net profit per subscriber would be a better comparison.


Indeed, I agree. Sometimes Wall Street hangs on numbers that don't seem to be as telling.

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#17 ONLINE   phrelin

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Posted 11 May 2010 - 11:53 AM

http://news.yahoo.co...ns_dish_network

Interesting tidbit someone forwarded to me this morning.

You have to acknowledge Charlie's willingness to engage in battle. And after all that "Dish will turn off its DVRs" and "Dish profits drop" discussion in the article we have at the end of the article without comment or explanation:

Shares of Dish, which is based in the Englewood, Colo., rose 58 cents, or 2.7 percent, to $21.88.

Dish Network's latest results show that it is gaining some ground on its rivals.

:rolleyes:

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#18 OFFLINE   ShapeShifter

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Posted 11 May 2010 - 12:07 PM

You have to acknowledge Charlie's willingness to engage in battle. And after all that "Dish will turn off its DVRs" and "Dish profits drop" discussion in the article we have at the end of the article without comment or explanation: :rolleyes:


Why should there be comments or explanation? It would appear that nobody likes good news, they only like to emphasize the negative.

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#19 OFFLINE   jacmyoung

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Posted 11 May 2010 - 10:52 PM

...The average net profit per subscriber would be a better comparison.


Or the net new sub addition per quarter, or the churn rate. DISH had a few very bad quarters in 2008 and part of 2009, they now are ahead of DirecTV by a big margin. When Charlie admitted back then he had lost his focus and would try to turn the tide of sub loss, I thought it was impossible given DirecTV's consistent performance at that time, but look what is happening now.

#20 OFFLINE   Bigg

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Posted 12 May 2010 - 10:13 AM

Dish benefited bigtime from DirecTV's price hiking. Dish is clearly cheaper than DirecTV, Comcast, or U-Verse.

Do we know what the saturation point for satellite is? At some point, there's only so many subs you are going to get. A large portion of the population lives in urban MDU's that don't have access to satellite, and with triple-play, cable is still competition.




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