Dish Sheds 334,000 TV Subs In Q4, Taking A Hit From HBO And Univision Blackouts

Discussion in 'General DISH™ Discussion' started by dennispap, Feb 13, 2019 at 9:53 AM.

  1. dennispap

    dennispap Icon

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    Dish Network lost a record 381,000 satellite TV subs in the fourth quarter of 2018, as the carriage standoffs with AT&T’s HBO and Univisionaccelerated the pain the company has already been feeling from cord-cutting trends.

    Dish eked out a net gain of just 47,000 subs for Sling TV, its cheaper over-the-top subscription offering, in the period. The Q4 2018 overall losses compares with Dish’s net addition of 39,000 in the year-ago quarter.

    Dish Sheds 334,000 TV Subscribers in Q4, Taking a Hit From HBO and Univision Blackouts
     
  2. MysteryMan

    MysteryMan Well-Known Member DBSTalk Club

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    Ouch.
     
  3. James Long

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

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    ENGLEWOOD, Colo., Feb. 13, 2019 /PRNewswire/ -- DISH Network Corporation (NASDAQ: DISH) reported revenue totaling $3.31 billion for the quarter ending December 31, 2018, compared to $3.48 billion for the corresponding period in 2017.

    Net income attributable to DISH Network totaled $337 million for the fourth quarter 2018, compared to $1.39 billion from the year-ago quarter. DISH's net income for the fourth quarter of 2018 was positively impacted by non-cash adjustments related to the adoption of the ASC 606 revenue recognition standard, net of related taxes, of $25 million. Fourth quarter 2017 net income was positively impacted by an income tax benefit of approximately $1.2 billion due to an adjustment to deferred tax assets and liabilities related to tax reform legislation, and negatively impacted by an impairment of long-lived assets expense of $112 million, net of related taxes.

    Diluted earnings per share were $0.64 for the fourth quarter, compared to $2.64 per share during the same period of 2017.

    The company closed the fourth quarter with 12.32 million Pay-TV subscribers, including 9.90 million DISH TV subscribers and 2.42 million Sling TV subscribers.

    Net Pay-TV subscribers decreased by approximately 334,000 in the fourth quarter, compared to net additions of 39,000 in the year-ago quarter.

    Full-Year 2018 Review

    For the year, DISH reported 2018 total revenue of $13.62 billion, compared to $14.39 billion in 2017. Subscriber-related revenue in 2018 was $13.46 billion, compared to $14.26 billion in 2017.

    Net income attributable to DISH Network in 2018 was $1.58 billion, compared to $2.10 billion in 2017. DISH's net income for 2018 was positively impacted by non-cash adjustments related to the adoption of the ASC 606 revenue recognition standard, net of related taxes, of $116 million. Net income for 2017 was positively impacted by an income tax benefit of approximately $1.2 billion related to tax reform legislation and was negatively impacted by an impairment of long-lived assets expense of $112 million and litigation expenses of $287 million, each net of related taxes.

    Diluted earnings per share were $3.00 in 2018, compared to $4.07 in 2017.

    Pay-TV ARPU was $85.46 during 2018 versus $86.43 in 2017. DISH TV's average monthly subscriber churn for 2018 was 1.78 percent, unchanged from 2017.

    Detailed financial data and other information are available in DISH Network's Form 10-K for the year ended Dec. 31, 2018, filed today with the Securities and Exchange Commission. DISH Network will host its fourth quarter and full-year 2018 financial results conference call today at noon ET.
     
  4. James Long

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

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    Crossing the 10 million satellite subscriber mark is one of those sobering milestones. Fortunately DISH has Sling TV subscribers ... but they pay less and are less profitable so it brings down the important number ($$$).
     
  5. NashGuy

    NashGuy Active Member

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    I would expect the defections from Dish to continue in the first half of this year, leading up to and during the final season of Game of Thrones on HBO. Of course, many Dish subs will just subscribe to HBO via streaming, which I imagine AT&T prefers over MVPD-distributed subscriptions. For those Dish customers without access to broadband, though, their only other option to get HBO would be to switch to DirecTV satellite, which would also please AT&T.
     
  6. mwdxer

    mwdxer Well-Known Member

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    Yes, a friend just switched to Direct as they missed HBO and for some reason did not want to get it off streaming. They do not have a Fire Stick or Roku but decided they did not want to buy one. They want everything in one package. I can see this downturn continuing as the Satellite/Cable outfits lose more programming, and people switch to streaming. Too bad HBO was bought by AT&T as they have a lot of power over the price and who they sell to. HBO is very popular my many and the customer would rather jump ship. I presume Direct TV went up in subscribers, mainly because of Dish's loss. It will be interesting to see how many stay after a couple years when their bills go way up.
     
  7. James Long

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

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    DIRECTV satellite lost 1.2 million subscribers in 2018 (403k in 4Q).
    The gains at Uverse (+50k) and DIRECTV NOW (+436k) led to a net lost of 720k subscribers in 2018.
    658k of AT&T's combined loss was in 4Q.

    (Yes, DIRECTV lost more satellite subscribers than DISH lost satellite subscribers in 2018.)
     

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