Dish Network, Echostar Report 2Q Losses
Englewood, Colo., August 6, 2013 — Dish Network Corp. reported today second-quarter loss as the company was hit by large impairment charges and pay-TV subscriber additions slowed. Former unit EchoStar Corp. also swung to a loss.
Dish posted revenue of US$ 3.61 billion for the quarter ending June 30, 2013, compared to US$ 3.57 billion for the corresponding period in 2012. Subscriber-related revenue increased 4.9 percent to US$ 3.46 billion from US$ 3.30 billion in the year-ago period.
But the slight rise in revenues were not enough to cover the US$ 438 million impairment charges Dish incurred from two of the three satellites the company acquired through the TerreStar and DBSD transactions. Dish suffered a net loss of $11 million during the quarter compared to US$ 226 million in net income earned in the year-ago quarter. Diluted loss per share was 2 cents, compared with earnings per share of 50 cents during the same period in 2012.
EchoStar, Dish Networks’s former parent company, posted total revenues of US$ 830 million for the quarter ended June 30, 2013 compared to US$ 806 million for the corresponding period in 2012. It also reported a net loss of US$ 9.8 million for the quarter and diluted loss per share of 11 cents, compared with net income of $35.7 million and diluted earnings per share of 41 cents during the same period last year.
Joseph P. Clayton, Dish president and CEO, said he is pleased to see continued growth in its Hopper receiver take rates, as well as growth in broadband-connected subscribers. He added the second quarter performance reflects the company’s efforts to promote its Dish mobile app, which will set the stage for long-range revenue performance.
Dish’s pay-TV ARPU for the second quarter totalled $80.90 compared to the year-ago period's pay-TV ARPU of US$ 77.59. Pay-TV subscriber churn rate increased to 1.67 percent versus 1.6 percent for second quarter 2012, reflecting a slowing down of subscriber additions due to higher programming package.
Dish added 624,000 gross new pay-TV subscribers compared to approximately 665,000 gross new pay-TV subscribers in the prior year's second quarter. Total subscribers declined approximately 78,000 in the second quarter. The company ended the second quarter with 14.014 million pay-TV subscribers compared to 14.061 million pay-TV subscribers at the end of second quarter 2012.
Dish also added approximately 61,000 net broadband subscribers in the second quarter, bringing its broadband subscriber base to approximately 310,000, a 24 percent increase sequentially. DISH added approximately 11,000 net broadband subscribers in the second quarter of 2012.
Dish’s first half revenues of US$ 7.16 billion increased 0.1 percent over $7.15 billion in revenue from the same period last year. In the first six months of 2013, net income attributable to Dish Network totalled $205 million compared with $586 million during the same period last year. Diluted earnings per share were US$ 0.45 for the first six months of 2013, compared with $1.30 during the same period in 2012.
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