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Dish loses 10K net subscribers in 2Q 2012

Discussion in 'General DISH™ Discussion' started by RAD, Jul 19, 2012.

  1. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    Normal "newspaper" writing style allows trimming the end of articles ... the first few paragraphs tell the story, the rest gives the details. And if space is not available to "print" the whole article the details can be lost without losing the core of the story.

    I guess there was not enough space on the Tribune's website for the full story. The extra words take up too much server space. :D
     
  2. RAD

    RAD Well-Known Member

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    Dripping...
    The rest of the 2Q results out today. From http://www.nasdaq.com/article/dish-network-q2-results-down-miss-estimates-20120808-00555

     
  3. Stewart Vernon

    Stewart Vernon Roving Reporter Staff Member Super Moderator DBSTalk Club

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    [​IMG]

    DISH Network Announces Second Quarter 2012 Financial Results

    ENGLEWOOD, CO -- (Marketwire) -- 08/08/12 -- DISH Network Corporation (NASDAQ: DISH)

    • YOY gross subscriber additions increase 16 percent
    • YOY net additions improved
    • Subscriber churn rate declines YOY
    DISH Network Corporation (NASDAQ: DISH) today reported revenue totaling $3.57 billion for the quarter ended June 30, 2012 compared with $3.59 billion for the corresponding period in 2011.

    Net income attributable to DISH Network totaled $226 million for the quarter ended June 30, 2012, a 32.6 percent decrease compared with $335 million during the same period last year. As a result of the loss of the 148-degree orbital slot license in the quarter, net income was negatively impacted by $43 million.

    Additional contributors to year-over-year net income decline included higher subscriber-related expenses from higher programming costs and increased subscriber acquisition costs associated with our 16.3 percent increase in gross subscriber additions, including increased brand advertising.

    Diluted earnings per share were $0.50 for the second quarter, compared with $0.75 during the same period in 2011. DISH Network's net subscribers decreased by approximately 10,000 during the second quarter, and the company ended the period with approximately 14.061 million subscribers. The subscriber churn rate of 1.60 percent was an improvement over the 1.67 percent rate from the year-ago quarter.

    "In the face of a difficult economy and stiff competition, a disciplined approach to subscriber acquisition and retention is paying off," said DISH CEO and President Joseph Clayton. "Our focus has overcome the seasonality of the second quarter with year-over-year growth in gross activations and a reduction in churn. Additionally, the launch of the Hopper™ Whole-Home HD DVR has improved subscriber quality by adding more DVR and broadband-connected customers to our base."

    Year-to-Date Review
    DISH Network's first half revenues of $7.15 billion increased 5 percent over the same period last year. In the first six months of 2012, net income attributable to DISH Network totaled $586 million compared with $884 million during the same period last year. Diluted earnings per share were $1.30 for first six months of 2012, compared with $1.98 during the same period in 2011.

    Detailed financial data and other information are available in DISH Network's Form 10-Q for the quarterly period ended June 30, 2012, filed today with the Securities and Exchange Commission.
    DISH Network will host its second quarter 2012 financial results conference call today at noon ET. The dial-in number is (800) 616-6729.

    About DISH
    DISH Network Corporation (NASDAQ: DISH), through its subsidiary DISH Network L.L.C., provides approximately 14.061 million satellite TV customers, as of June 30, 2012, with the highest quality programming and technology with the most choices at the best value, including HD Free for Life. Subscribers enjoy the largest high definition line-up with more than 200 national HD channels, the most international channels, and award-winning HD and DVR technology. DISH Network Corporation's subsidiary, Blockbuster L.L.C., delivers family entertainment to millions of customers around the world. DISH Network Corporation is a Fortune 200 company. Visit www.dish.com.
     
  4. RAD

    RAD Well-Known Member

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    Any thoughts on why the loss of 148 would cause the drop in income? I thought the FCC took the license away because Dish wasn't using it, so if they weren't using it to begin with how could it cause a loss of $43M in income for the quarter?
     
  5. Stewart Vernon

    Stewart Vernon Roving Reporter Staff Member Super Moderator DBSTalk Club

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    Was Dish sub-leasing transponders off of 148? I know they have leased transponders on other SATs... that could explain loss of revenue if they were leasing slots on 148 before they lost it.
     
  6. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    Neither DISH nor Echostar have a satellite at 148 - which is the primary reason why DISH lost the license. I have not read through the filing, but the loss was probably writing off the value of those licenses.
     
  7. RAD

    RAD Well-Known Member

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    That could be, guess I just wasn't expecting it to be noted against income vs. listing it against assets.
     
  8. Stewart Vernon

    Stewart Vernon Roving Reporter Staff Member Super Moderator DBSTalk Club

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    Oops... I guess I forgot when that happened. I know they used to have a SAT there :) I just must have forgotten (or not noticed) when they moved it.
     
  9. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    On May 31, 2012, the International Bureau of the FCC announced the termination of our license for use of the 148 degree orbital location associated with our DISH segment. We have not had a satellite positioned at the 148 degree orbital location since the retirement of EchoStar V in August 2009. Our license for use of the 148 degree orbital location had a $68 million carrying value. This amount was recorded as “Depreciation and amortization” expense on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) in the second quarter 2012 due to the termination of this license by the FCC.
    DISH SEC Filing​
     
  10. BillJ

    BillJ Icon

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    Even though AMC, etc didn't go dark until June 30, I wonder how many of those 10,000 lost subscribers left because of the expected channel loss?
     
  11. SayWhat?

    SayWhat? Know Nothing

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    If I have a driver's license, but don't have a car or access to one, does the license have value? If I lose that license, can I take a large writeoff?
     
  12. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    It is just a line on a balance sheet. DISH lost 675k customers, which is less than they lost in the same quarter a year ago. DISH signed up 665k new customers in the 2nd quarter. Net gains are good but DISH is still getting people to sign up for their service and the number of customers lost is not remarkably higher than 'usual'.
     
  13. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    Do you want a job that requires a driver's license? Perhaps an employer who would give you access to a vehicle for work or would require the license as a step toward operating a forklift or other vehicle at work? That would place a value on having a driver's license. And when filling out a job application or resume you might list that asset. But people don't report their financials in the same way as a business.

    The satellite license had value because they are hard to get and they allow the company to do something no other company can do ... place a satellite at 148 and use it to serve customers. When a business loses an asset it needs to be written off.
     
  14. TBoneit

    TBoneit Hall Of Fame

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    I thought they were using 148 to serve foreign channels to the west coast as a mirror of 61.5 back when all the foreign was on 61.5?

    Now that th moved them went to a eastern arc and a western arc they most likely didn't use 148.
     
  15. WebTraveler

    WebTraveler Icon

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    It's probably the capitalized costs on Dish's books now charged to a loss on a discontinued operation.....
     

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