Dish Network Loses More Subscribers
November 09 2016 - 8:10AM
Dow Jones News
Dish Network Corp. on Wednesday reported revenue growth in the
third quarter, as its acquisition costs decreased and its average
monthly revenue per subscriber increased, but the
satellite-television provider continued to lose subscribers.
Dish said added about 736,000 gross paid subscribers during the
quarter ended Sept. 30, compared with about 751,000 in the year-ago
quarter. But net subscribers declined by 116,000 during the
quarter, compared with a loss of 23,000 subscribers last year.
The company said it had fewer new paid subscribers because it
had stricter customer-acquisition policies and an increased focus
on acquiring higher-quality subscribers. It also faced increased
competition in the quarter. The average acquisition cost per
subscriber fell to $640 from $736, while the average monthly
revenue per subscriber rose to $89.44 from $86.33.
In all, the company reported a profit of $307.4 million, or 64
cents a share, up from $196.5 million, or 42 cents, a year ago.
Revenue edged up 0.3% to $3.75 billion.
Analysts polled by Thomson Reuters had anticipated earnings of
68 cents a share on $3.74 billion in revenue.
The company closed the quarter with roughly 13.6 million pay-TV
subscribers, compared with 13.9 million at the end of the year-ago
quarter. The company includes subscriptions to its Sling TV
streaming service in its total pay-TV metrics.
Pay-TV subscriber churn, the rate at which subscribers leave the
service, rose to 2.11% from 1.86% a year earlier because of
marketing and discounts from competitors as well as cord-cutting,
as some consumers drop television subscriptions in favor of
streaming services. Dish also said it was more selective in
offering retention credits.
Dish lost roughly 20,000 net broadband subscribers during the
quarter, bringing its total broadband base to about 593,000.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
November 09, 2016 07:55 ET (12:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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