DISH Network Corp.
), the second largest satellite TV operator in the U.S. after
), declared first-quarter 2014 financial results, where the bottom
line missed the Zacks Consensus Estimate but the top line outpaced
At the end of the first quarter of 2014, DISH Network had
approximately 14.097 million pay-TV subscribers, up 0.04% year over
year. The company gained 41,000 pay-TV subscribers and 53,000
broadband subscribers in the same quarter. At the end of the
quarter under review, DISH Network had 489,000 broadband
Quarterly net income came in at $175.9 million or 38 cents per
share compared with $215.6 million or 47 cents per share in the
year-ago quarter. Earnings also missed the Zacks Consensus Estimate
of 43 cents. Quarterly total revenue stood at approximately
$3,594.2 million, up 6.1% year over year and also outpaced the
Zacks Consensus Estimate of $3,581 million.
Segment wise, quarterly Subscriber related revenues were $3,556.2
million, up 5.8% year over year. Equipment and merchandise sales
& other revenues totaled $22.2 million, down 13.5% from the
year-ago quarter. Equipment sales, services and other revenues from
EchoStar were $15.8 million, up 86.7% year over year.
Average monthly subscriber churn pay-TV rate in the first quarter
of 2014 was 1.42% compared with 1.47% in the prior-year quarter.
Average revenue per user was $82.36 against $78.44 in the year-ago
quarter. Average subscriber acquisition cost in the first quarter
of 2014 was $862 compared with $882 in the year-ago quarter.
In the reported quarter, Subscriber-related expenses crept up 9.3%
year over year to $2,069.1 million. Total Subscriber acquisition
costs fell 3.3% year over year to $449.1 million. Depreciation and
amortization expenses were $249.2 million, up 7.6% from the
prior-year quarter. General and administrative expenses were down
13.2% year over year to $178.3 million. First-quarter 2014
operating profit was $446.3 million compared with $451.6 million in
the prior-year quarter. Accordingly, quarterly EBITDA was $695.4
million as against $698.1 million in the year-ago quarter.
At the end of the first quarter of 2014, DISH Network generated
$670.7 million of cash from operations compared with $708.4 million
in the prior-year period. Free cash flow (cash flow from operations
less capital expenditures) totaled $383.1 million compared with
$397.5 million in the year-ago period.
At the end of the first quarter of 2014, DISH Network had $8,961.5
million of cash and marketable securities and $12,570.2 million of
outstanding debt on its balance sheet compared with $9,739.4
million and $12,616 million, respectively, at the end of 2013.
DISH Network is transforming itself from a low-priced leader in the
U.S. pay-TV industry to a premium service provider in order to
check subscriber churn. Moreover, the plan to deploy triple-play
services coupled with the increased rollout of its popular hopper
devices will help the company drive subscriber growth and counter
stiff competition from
) U-Verse pay-TV service.
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