DISH Network Posts Mixed 4Q - Analyst Blog
February 20 2013 - 5:21AM
Zacks
DISH Network Corp. (DISH) declared mixed
financial results for the fourth quarter of 2012. Most importantly,
the company generated net subscriber addition in the reported
quarter, reversing the trend of the prior two successive quarters.
In the fourth quarter of 2012, DISH Network gained 14,000 net
subscribers. At the end of 2012, DISH Network had approximately
14.056 million subscribers, up 0.6% year over year.
Quarterly GAAP net income was $209.1 million or 46 cents per
share compared with $312.7 million or 70 cents per share in the
year-ago quarter. Fourth-quarter 2012 earnings per share of 46
cents were way below the Zacks Consensus Estimate of 56 cents.
Quarterly total revenue inched down 0.01% year over year to
$3,589.5 million but surpassed the Zacks Consensus Estimate of
$3,565 million.
Segment wise, in fiscal 2012, Subscriber related revenue was
$13,085.9 million, up 0.8% year over year. Equipment and
merchandise sales & other revenue were $1,162.7 million, up
12.2% year over year. Equipment sales, services, and other revenue
from EchoStar were $17.9 million, down 50.9% year over year.
Average monthly subscriber churn rate in 2012 was 1.57% compared
with 1.63% in 2011. Average revenue per user in 2012 was $77.10
compared with $76.45 in 2011. Average subscriber acquisition cost
in 2012 was $784 compared with $771 in 2011.
In fiscal 2012, Subscriber-related expenses increased 6% year
over year to $7,254.5 million, driven by higher programming content
costs and expenses related to call center operations. Subscriber
acquisition cost jumped 12.1% year over year to $1,687.3 million.
Depreciation and amortization expenses were $983 million, up 6.6%
year over year.
General and administrative expenses grew 9.6% year over year to
$1,353.5 million on higher personnel costs and professional fees to
support the network. Full year 2012 operating income plunged by
58.3% to $1,221.8 million, while operating margin declined to 9.3%
from the year-ago level of 22.6%. Accordingly, EBITDA was over
$2,364.1 million in fiscal 2012, down 38.7% year over year.
During 2012, DISH Network generated $2,011.9 million of cash
from operations compared with $2,573.9 million in 2011. Free cash
flow (cash flow from operations less capital expenditures) in 2012
was $1,054.3 million compared with $1,795 million in 2011.
At the end of 2012, DISH Network had $7,356.8 million of cash
and marketable securities and $11,639 million of outstanding debt
on its balance sheet compared with $2,040.8 million of cash and
marketable securities and $7,493.8 million of outstanding debt on
its balance sheet at the end of 2011.
Other Stocks to Consider
DISH Network currently has a Zacks Rank #3 (Hold). Other stocks
to consider in the U.S. pay-TV industry are Comcast
Corp. (CMCSA), DIRECTV Inc. (DTV) and
Time Warner Cable Inc. (TWC). While Comcast’s net
earnings slightly fell below the Zacks Consensus Estimate in the
most recent quarter, both DIRECTV and Time Warner Cable beat the
same. However, Comcast and DIRECTV currently have a Zacks Rank #3
(Hold) while Time Warner Cable has a Zacks Rank #5 (Strong
Sell).
COMCAST CORP A (CMCSA): Free Stock Analysis Report
DISH NETWORK CP (DISH): Free Stock Analysis Report
DIRECTV (DTV): Free Stock Analysis Report
TIME WARNER CAB (TWC): Free Stock Analysis Report
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