DISH Network Reports First Quarter 2016 Financial Results

Discussion in 'General DISH™ Discussion' started by James Long, Apr 20, 2016.

  1. James Long

    James Long Ready for Uplink! Staff Member Super Moderator

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    DISH Network Reports First Quarter 2016 Financial Results

    ENGLEWOOD, Colo.--(BUSINESS WIRE)-- DISH Network Corporation (NASDAQ: DISH) today reported revenue totaling $3.79 billion for the quarter ending March 31, 2016, compared to $3.72 billion for the corresponding period in 2015. Subscriber-related revenue increased to $3.78 billion from $3.7 billion in the year-ago period.

    Net income attributable to DISH Network totaled $389 million for the quarter ending March 31, 2016, compared to net income of $351 million from the year-ago quarter. Diluted earnings per share for the quarter ending March 31, 2016 were $0.84, compared with $0.76 during the same period in 2015.

    DISH includes all of its Sling TV subscribers in the company's total Pay-TV metrics, including in the Pay-TV subscriber, Pay-TV ARPU and Pay-TV churn rate numbers set forth below. Sling TV subscribers are reported net of disconnects in our gross new Pay-TV subscriber activations.

    In the first quarter, DISH activated approximately 657,000 gross new Pay-TV subscribers, compared to approximately 723,000 gross new Pay-TV subscribers in the prior year's first quarter. Net Pay-TV subscribers declined approximately 23,000 in the first quarter, compared to a gain of approximately 35,000 in the first quarter 2015.

    The company closed the first quarter with 13.874 million Pay-TV subscribers, compared to 14.013 million Pay-TV subscribers at the end of first quarter 2015.

    Pay-TV ARPU for the first quarter totaled $87.94, compared to the year-ago period's Pay-TV ARPU of $85.73. Pay-TV subscriber churn rate was 1.63 percent versus 1.64 percent for first quarter 2015.

    DISH added approximately 5,000 net broadband subscribers in the first quarter, bringing its broadband subscriber base to approximately 628,000.

    Detailed financial data and other information are available in DISH Network's Form 10-Q for the quarter ended March 31, 2016, filed today with the Securities and Exchange Commission.
     
  2. mwdxer

    mwdxer Well-Known Member

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    It doesn't look like Dish is hurting. As I said, all of these disputes, the consumer is the one that loses.
     
  3. Stewart Vernon

    Stewart Vernon Roving Reporter Staff Member Super Moderator DBSTalk Club

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    Yeah, there will be "the sky is falling" people... but given the state of the economy and how many people are out of work entirely OR underemployed, Dish is doing a pretty good job in my opinion of staying relatively flat year-to-year with number of subscribers.
     
  4. inkahauts

    inkahauts Well-Known Member

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    Id like to see them breakout the sling subscribers gain and loses personally. I'm curios if they track how many leave dish for sling too...

    Flat numbers IMHO are great. They are more of a cash cow. Just milk it and don't think oh we need to make cuts to gain more subs or something. I hate when companies do that that don't need to. A good profit is better than a massively skyrocketing one that latter bursts and crashes.
     
  5. camo

    camo Godfather

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    You can see see subs are down. The net broadband subs I feel sorry for, all 5000 of them stuck with dial up speeds and 2 year contracts. Unless its changed recently satellite broadband is the worse.
     
  6. Blowgun

    Blowgun DHMO User

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    Making more money on fewer people.
     
  7. James Long

    James Long Ready for Uplink! Staff Member Super Moderator

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    Average revenue per subscriber ~$2 higher (2.3%).
    Basically the same increase as the subscriber related expenses.
     
  8. camo

    camo Godfather

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    Yeah rate increases are offsetting sub decline...(Net Pay-TV subscribers declined approximately 23,000 in the first quarter, compared to a gain of approximately 35,000 in the first quarter 2015.) Spin it however you want this isn't a healthy sign.
     
  9. inkahauts

    inkahauts Well-Known Member

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    It is as long as the loss is tiny which it is. Ups and downs don't spell massive doom.

    If they where to drop Viacom I wonder if they could just freeze all hike rates for the next, say three years, and promote the heck out of that. Would be an interesting strategy.
     
  10. mwdxer

    mwdxer Well-Known Member

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    Or with Viacom out of the picture, lower our price a bit and then promote it. Isn't Direct TV more expensive than Dish? I know it used to be, but I have not checked of late. But closing in on $100 a month (w/o DVR fees) for the biggest package, AT250, the cost is getting long in the tooth. Then going to a smaller package, a lot of good channels are not there and the price is only down $10-$25 less a month. I can see why people are cutting the cord completely. The programmers want too much for what they offer. One friend only gets a Premiums, I believe and only watches non commercial channels. He hates the "double-dipping" of paying for the channel and then being stuck to put up with commercials. The amount of ads per show are terrible. Watching the old early 60s B&W shows had 50 minutes of program. Today, 40 minutes and we are paying plenty to watch this.
     
  11. James Long

    James Long Ready for Uplink! Staff Member Super Moderator

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    According to Viacom's website, their channels represent 10% of programming costs. Which would be a nice discount if it were 10% off the entire bill, but subscriber related expenses represent 58% of DISH revenue. At an ARPU of $87.94, 58% would be $51. 10% would be $5 - averaging 28c/month for the Viacom channels. Which sounds about right based on other reports.

    If Viacom leaves they will be back. They have enough variety in their channels that (according to Viacom) 19% of subscribers under 50 are watching one of their channels. DISH would not lose all of those subscribers if Viacom left forever ... but that is still a respectable number of subscribers.

    And despite Viacom's insults of size of DISH (the #3 pay TV provider), DISH's nearly 14 million subscribers represents an estimated 14% of the pay TV marketplace. Viacom would lose 14% of their potential viewers and need to convert them to other services or direct pay.

    If Viacom goes they will be back. It is better for both companies if they stay together.
     
  12. mwdxer

    mwdxer Well-Known Member

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    10%..Wow. That is more than I thought. I guess both need each other.
     
  13. Stewart Vernon

    Stewart Vernon Roving Reporter Staff Member Super Moderator DBSTalk Club

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    I know a case can be made that IF Dish "moves" a subscriber from Satellite subscription to Sling TV subscription... they have lost money... because Sling TV doesn't bring in as much revenue as the average Dish subscriber. So, one way to look at that is as a loss of revenue.

    BUT... the way I'm sure Dish looks at it is... they were going to lose those Dish customers anyway, probably to one of the streaming options... so by having Sling TV to sell them instead, Dish doesn't entirely lose that customer. In that way, a a business you'd consider it as a win because you didn't lose a customer entirely as you would have in the past.
     
  14. mwdxer

    mwdxer Well-Known Member

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    So far Sling just does not have enough offerings.
     
  15. inkahauts

    inkahauts Well-Known Member

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    That's assuming dish makes less per subscriber on dish than sling. I wouldn't be surprised if it wasn't the other way around if you don't count original startup costs to get sling going. Sling may be more profitable.
     
  16. Stewart Vernon

    Stewart Vernon Roving Reporter Staff Member Super Moderator DBSTalk Club

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    This is a good plausible point... Even though the gross revenue for a Sling TV customer is less, it is entirely possible that the net profit to Dish could be the same or more... so not only do they not lose a customer, it's theoretically possible that they might not lose any profitability either.

    I was just speaking to the "worst case" scenario where it wasn't as profitable but at least gets them some money as opposed to no money if a customer completely falls off the table.
     
  17. david_jr

    david_jr Godfather

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    I suspect that it is difficult to "offer" more without significantly increasing the price. I think they are trying to keep the price as low as possible to entice all of the cord-cutters who are looking to get as much as possible for low cost or free. Once the free/low cost online content faucet gets shut off or drastically curtailed by the content providers, which it eventually will, it will probably be more cost effective for Dish to offer more through Sling.
     

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