Jump to content


Welcome to DBSTalk


Sign In 

Create Account
Welcome to DBSTalk. Our community covers all aspects of video delivery solutions including: Direct Broadcast Satellite (DBS), Cable Television, and Internet Protocol Television (IPTV). We also have forums to discuss popular television programs, home theater equipment, and internet streaming service providers. Members of our community include experts who can help you solve technical problems, industry professionals, company representatives, and novices who are here to learn.

Like most online communities you must register to view or post in our community. Sign-up is a free and simple process that requires minimal information. Be a part of our community by signing in or creating an account. The Digital Bit Stream starts here!
  • Reply to existing topics or start a discussion of your own
  • Subscribe to topics and forums and get email updates
  • Send private personal messages (PM) to other forum members
  • Customize your profile page and make new friends
 
Guest Message by DevFuse

Photo

DISH Network Announces Third Quarter 2011 Financial Results


  • Please log in to reply
13 replies to this topic

#1 OFFLINE   Slamminc11

Slamminc11

    Hall Of Fame

  • Registered
  • 1,335 posts
Joined: Jan 27, 2005

Posted 07 November 2011 - 06:06 AM

DISH Network Revenues Grow by 12.3 Percent to $3.60 Billion and Net Income Increases 30.3 Percent to $319 Million; DISH Declares Non-Recurring Dividend


ENGLEWOOD, CO -- (MARKET WIRE) -- 11/07/11 -- DISH Network Corporation (NASDAQ: DISH) today reported its third quarter 2011 financial results.

Revenue totaled $3.60 billion for the quarter ended Sept. 30, 2011, a 12.3 percent increase compared with $3.21 billion for the corresponding period in 2010. Net income attributable to common shareholders totaled $319 million for the quarter ended Sept. 30, 2011, a 30.3 percent increase compared with $245 million during the same period last year. Diluted earnings per share were $0.71 for the third quarter, compared with $0.55 during the same period in 2010. DISH Network's net subscribers decreased by approximately 111,000 during the third quarter, and the company ended Sept. 30, 2011, with approximately 13.945 million subscribers.

"DISH delivered another quarter of strong growth in net income compared to the same period last year," said Joe Clayton, president and CEO of DISH Network. "Our net subscriber loss improved over the second quarter of this year but continued to be affected by increased competitive pressures, including aggressive competitive promotional offers, discounting and a weak housing market. Going forward, we plan to build on the momentum of our introduction of the Blockbuster-branded programming service which allows DISH customers to stream movies and TV shows as well as receive DVDs by mail."

Detailed financial data and other information are available in DISH Network's Form 10-Q for the quarterly period ended Sept. 30, 2011, filed today with the Securities and Exchange Commission.

DISH Network will host its third quarter 2011 financial results conference call today at noon ET. The dial-in number is (800) 616-6729.

Non-Recurring Dividend
On Nov. 1, 2011, DISH Network Corporation's Board of Directors declared a non-recurring dividend of $2.00 per share on outstanding Class A and Class B common stock. The dividend will be payable in cash on Dec. 1, 2011, to shareholders of record on Nov. 17, 2011.

...Ads Help To Support This Site...

#2 OFFLINE   phrelin

phrelin

    Hall Of Fame

  • Registered
  • 13,553 posts
  • LocationNorthern California Redwoods
Joined: Jan 18, 2007

Posted 07 November 2011 - 11:33 AM

Oh, oh. This is the first time I've seen what I would call "distortional spin" in the news release, meaning game playing with the numbers to attempt to influence shallow analysts. And I don't understand the dividend in relationship to the balance sheet.

We now have "segments", Dish Network and Blockbuster with segment reporting in the notes on page number 33 (page 43 in the PDF).

In fact, the segment now known as Dish Network did see a 1.5% revenue gain over the same quarter last year and a 4% gain for the first three quarters over the first three quarters last year.

But what's weird is the quarterly net income for the segment is up 30% year-to-year and 64% over the 9 month figures year-to-year.

Not really buried, but perhaps slipped in when I wasn't paying attention is the following which contains a substantial revenue increase:

Equipment and merchandise sales, rental and other revenue. “Equipment and merchandise sales, rental and other revenue” principally includes the non-subsidized sales of DBS accessories to retailers and other third-party distributors of our equipment domestically and to DISH Network subscribers. Effective April 26, 2011, revenue from merchandise sold to customers including movies, video games and other accessories, and revenue from the rental of movies and video games and the sale of previously rented titles related to our Blockbuster operations are included in this category.

That quarterly number was $362 million versus $12 million year to year.

Which brings us back to reality. Net income on the Blockbuster segment for the quarter was a negative $177,000. Blockbusters revenue was $347 million. So I assume the Dish Network segment's Equipment and merchandise sales, rental and other quarterly revenue rose to around $15 million from $12 million.

I'm not sure that $2 dividend totaling $892 million in cash is such a good idea when the quarterly shows only $1 billion in cash.

Finally, Echostar took a large quarterly loss. Yeah, it's a separate company. But basically its quarterly revenue from Dish Network dropped 10% year-to-year. Buried in all that is the Sling Media operation. I see all these adapters and the 922 technology and wonder where's the revenue from that technology.

Oh well....

"In a hundred years there'll be a whole new set of people."
"Always poke the bears. They sleep too much for their own good."

"If you're good enough, they'll talk about you." - Tom Harmon
A GEEZER who remembers watching TV in 1951 and was an Echostar customer from 1988 to 2008, now a Dish Network customer.
My AV Setup
My Slingbox Pro HD Experience
My Blog: The Redwood Guardian


#3 OFFLINE   Stewart Vernon

Stewart Vernon

    Excellent Adventurer

  • Moderators
  • 19,904 posts
  • LocationKittrell, NC
Joined: Jan 07, 2005

Posted 07 November 2011 - 03:38 PM

Dish and Echostar are officially two unique entities... so while we know they have close ties, they have to keep their numbers separate.

I think this is the first quarterly report since Dish bought Blockbuster, though, so it might make sense for them to try and differentiate those numbers.

Dish owns Blockbusters, so while they may be trying to operate them as separate entities still... it isn't like Echostar which actually is a separate company.

-- Respect the S.H.I.E.L.D.


#4 OFFLINE   phrelin

phrelin

    Hall Of Fame

  • Registered
  • 13,553 posts
  • LocationNorthern California Redwoods
Joined: Jan 18, 2007

Posted 07 November 2011 - 04:52 PM

Dish and Echostar are officially two unique entities... so while we know they have close ties, they have to keep their numbers separate.

Yes, I agree. What I'm concerned about is that Dish is not compensating Echostar enough for the Sling Media products.

I think this is the first quarterly report since Dish bought Blockbuster, though, so it might make sense for them to try and differentiate those numbers.

Dish owns Blockbusters, so while they may be trying to operate them as separate entities still... it isn't like Echostar which actually is a separate company.

Yep. But what Dish has done is in the news release which offered up this:

Revenue totaled $3.60 billion for the quarter ended Sept. 30, 2011, a 12.3 percent increase compared with $3.21 billion for the corresponding period in 2010. Net income attributable to common shareholders totaled $319 million for the quarter ended Sept. 30, 2011, a 30.3 percent increase compared with $245 million during the same period last year. Diluted earnings per share were $0.71 for the third quarter, compared with $0.55 during the same period in 2010.

And they don't break down the entities on the main financial statements. You have to go to the notes on page number 33 (page 43 in the PDF) to find out that the Dish Network operations revenue is up only 1.4%.

I understand the desire not to emphasize that the Dish Network segment had only 13.945 million subscribers as of September 30, 2011 as analysts tend to think that's the only number in the statements. In fact they had 13.851 million subscribers as of September 30, 2009, so they are still up 94,000 subscribers compared to two years ago.

But a year ago they had 14.289 million subscribers which seemed like a huge gain that now seems lost.

Looking forward, one has to take note of four things:
  • The Dish segment has frozen rates on packages until February 2013
  • The Dish segment is paying higher retransmission fees
  • The Dish segment is losing subscribers
  • The Dish Network corporation Board of Directors has chosen to pay out $0.892 billion in cash dividends when it is reporting it has only $1.046 billion in cash.
Perhaps management thinks that when the one year freebie expires in February, they'll see higher revenues from premiums or there'll be higher revenues from the $10 Platinum/Blockbuster thing. Or maybe they'll produce more revenue from more 922's or the XiP will come out sooner than December 2012.

I don't know what they have in mind. I like what we have seen in all the speculation on the acquisitions. But my tendency is to look at these financials taking on a bean counter viewpoint. I see the beans slipping away.

Edited by phrelin, 07 November 2011 - 05:20 PM.
typo

"In a hundred years there'll be a whole new set of people."
"Always poke the bears. They sleep too much for their own good."

"If you're good enough, they'll talk about you." - Tom Harmon
A GEEZER who remembers watching TV in 1951 and was an Echostar customer from 1988 to 2008, now a Dish Network customer.
My AV Setup
My Slingbox Pro HD Experience
My Blog: The Redwood Guardian


#5 OFFLINE   Stewart Vernon

Stewart Vernon

    Excellent Adventurer

  • Moderators
  • 19,904 posts
  • LocationKittrell, NC
Joined: Jan 07, 2005

Posted 08 November 2011 - 12:48 AM

It's murky to be sure.

Whenever Dish adds subscribers their profit is down... whenever they lose subscribers their profit is up.

Other than that, the rest is hard to decipher.

I still maintain the same argument I've had for a while... IF you dig at the numbers, Dish is losing customers at a reasonable rate compared to their competition.

The problem is... Dish has NOT been good at new customer acquisition... and I know they hired some new folk and are supposed to be working on that, but most of that started at the end of the just-reported quarter.

I have seen a couple of commercials for the Movie Pass that are much slicker than Dish has made in the past... so that's a start.

I think a lot of people still don't even think about Dish... but think DirecTV vs their local cable... I think Dish has quietly been the little satellite company that could... and hope they are trying to get "out there" a bit more with the Blockbuster acquisition to increase their familiarity to potential customers.

-- Respect the S.H.I.E.L.D.


#6 OFFLINE   Herdfan

Herdfan

    Hall Of Fame

  • DBSTalk Club
  • 6,081 posts
  • LocationTeays Valley, WV
Joined: Mar 18, 2006

Posted 08 November 2011 - 08:50 AM

And I don't understand the dividend in relationship to the balance sheet.


While dividends are thought of as being paid from profits, they are technically paid from Retained Earnings which is part of the equity section of the balance sheet.

#7 OFFLINE   tcatdbs

tcatdbs

    Icon

  • Registered
  • 571 posts
Joined: Jul 10, 2008

Posted 08 November 2011 - 08:57 AM

If they would offer "New Customer Rates" to existing subscribers after their 12 month contract is up, they wouldn't lose nearly as many subs. Cable, Direct and Dish all offer "specials" that cause subs to bounce from one to another... maybe if everyone offered one "low" rate across the board, customers would stay put.

My rate going from $45 to $75 after the "Absolute" package drop, and now I'm getting close to my $20 worth of freebies expiring... no way I'll stick around at $85-$95 for what I was paying $45 for a year ago.

#8 OFFLINE   Stewart Vernon

Stewart Vernon

    Excellent Adventurer

  • Moderators
  • 19,904 posts
  • LocationKittrell, NC
Joined: Jan 07, 2005

Posted 08 November 2011 - 03:19 PM

If they would offer "New Customer Rates" to existing subscribers after their 12 month contract is up, they wouldn't lose nearly as many subs.


Sure they would... because "give an inch, take a mile" is in play.

IF rates were lowered, that would become the new normal... and people would demand a new better deal when their term was up. It is the nature of people to keep wanting more.

Also, giving existing customers the new customer discount in perpetuity means Dish (or any company) would be always on a tight profit margin... We like new satellite launches and more channels and new equipment... they get to spend on those things by making profit now. Cut the profit margin, and those things get fewer and farther between.

-- Respect the S.H.I.E.L.D.


#9 OFFLINE   phrelin

phrelin

    Hall Of Fame

  • Registered
  • 13,553 posts
  • LocationNorthern California Redwoods
Joined: Jan 18, 2007

Posted 08 November 2011 - 04:52 PM

While dividends are thought of as being paid from profits, they are technically paid from Retained Earnings which is part of the equity section of the balance sheet.

That I understand, but reality is they are paid from available cash which this time will be depleted significantly if I read the balance sheet correctly.

By the way, usually Charlie makes these things work. But the new guy working for him has a history of bankrupting companies.

Edited by phrelin, 08 November 2011 - 04:54 PM.
By the way....

"In a hundred years there'll be a whole new set of people."
"Always poke the bears. They sleep too much for their own good."

"If you're good enough, they'll talk about you." - Tom Harmon
A GEEZER who remembers watching TV in 1951 and was an Echostar customer from 1988 to 2008, now a Dish Network customer.
My AV Setup
My Slingbox Pro HD Experience
My Blog: The Redwood Guardian


#10 OFFLINE   phrelin

phrelin

    Hall Of Fame

  • Registered
  • 13,553 posts
  • LocationNorthern California Redwoods
Joined: Jan 18, 2007

Posted 09 November 2011 - 05:25 PM

From The Morning Bridge:

Questions during the DISH Network conference call yesterday focused a lot on programming ... sports, premium, low-end packages and the like. From the viewpoint of head honcho Charlie Ergen a low-end package is critical (and, indeed, DISH currently offers a $19.99 starter). Noting that the big, big cost in programming in sports, he suggested, that NOT offering the high-cost sports networks "is probably a valid, long-term strategy" given that sports possibly accounts for "20% of the viewing and 50% of the cost." On premiums, Ergen suggested that "Every time someone subscribers to Netflix, it's probably half of a customer (taken) from our end" as subscribers continue to substitute cheaper online services for the cost of premiums....


"In a hundred years there'll be a whole new set of people."
"Always poke the bears. They sleep too much for their own good."

"If you're good enough, they'll talk about you." - Tom Harmon
A GEEZER who remembers watching TV in 1951 and was an Echostar customer from 1988 to 2008, now a Dish Network customer.
My AV Setup
My Slingbox Pro HD Experience
My Blog: The Redwood Guardian


#11 OFFLINE   R.Ivan

R.Ivan

    New Member

  • Registered
  • 1 posts
Joined: Dec 18, 2007

Posted 11 December 2011 - 02:36 PM

The one percent at it again???? Good Luck to us all....

#12 OFFLINE   RasputinAXP

RasputinAXP

    Hall Of Fame

  • Registered
  • 3,135 posts
Joined: Jan 23, 2008

Posted 11 December 2011 - 06:58 PM

???

"Belligerent and numerous."

Sometimes I update the Dish Network FAQ

AT200, Hopper & 360 via HDMI to Onkyo 505 to basement 42" Westy, Hopper via Comp-over-Cat5 to living room 42" Vizio with a Roku 3, Joey to Toshiba 32" LCD with a Logitech Revue. You want fries with that? Pull up to the 2nd window.


#13 OFFLINE   tampa8

tampa8

    Godfather/Supporter

  • Registered
  • 1,861 posts
Joined: Mar 30, 2002

Posted 11 December 2011 - 10:30 PM

???


+1

#14 OFFLINE   Jim5506

Jim5506

    Hall Of Fame

  • Registered
  • 3,502 posts
Joined: Jun 07, 2004

Posted 13 December 2011 - 06:34 AM

There is no 1%, we are all 100% - were in this together.
Tuners: Hopper 2000; Hopper w/Sling; 3 Joeys; Samsung SIR-T351; Accurian 6000;2 X HD TiVo; 2 X TiVo Series 2 Stand alone; Panasonic Showstopper 2000
Dish 1000.2 @ 110, 119, 129; dish 500 @ 61.5
Antennas - CM4228; RS U75-R; coathanger; Funke PSP.1922 (stillin the box); paperclip
Displays: Sony VPH D50Q with HD Fury HDMI input; Hitachi 57F59; Sony Bravia LCD;Sanyo 32" LCD; Panasonic 42" plasma
Sony 80GB PS3; Toshiba HD-DVD

Give me a Finco colinear array and I'll rule the world - HA-HA-HA-HA!




Protected By... spam firewall...And...