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DISH Network (DISH) Beats Q3 Earnings Lags Revenues

DISH Network Corp.DISH is a leading satellite TV operator in the U.S. The company provides video services under the DISH brand. In addition, the company provides satellite broadband services, and wireline voice and broadband services under the dishNET brand.

Over the last 3-4 years, the internal dynamics of the U.S. pay-TV industry have been gradually shifting from cable/satellite TV operators to large telecom operators and low-cost over-the-top service providers. Extensive network of fiber-based video services from telecom operators and the strong presence of online video streaming providers are posing significant threat to the existing cable TV business model. Meanwhile, cord-cutting has become a serious concern for major pay-TV operators. DISH is also facing all these negatives.

Moreover, in Aug 2015, U.S. telecom regulator the FCC unanimously voted against DISH's claim of a $3.3 billion discount on its total bid to acquire airwaves in the AWS-3 spectrum auction. This is undoubtedly a major setback for the company, which has developed a strong portfolio of wireless airwaves over the last 2-3 years.

Nevertheless, earlier this year, DISH has launched its linear streaming Internet TV services, which include news and children's programs, as well as a video on-demand programming library. The service is called Sling TV. Furthermore, the company currently holds a strong portfolio of valuable wireless spectrums.

DISH currently carries a Zacks Rank #3 (Hold). The company has generated a positive average earnings surprise of a substantial 54.45% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: DISH has outpaced Q3 earnings estimate. Our consensus earnings estimate called for an EPS (earnings per share) of 40 cents and the company reported EPS was 42 cents. Investors should note that these figures take out stock option expenses.

Revenue: DISH reported total revenue of $3,733.6 million lagging our estimate by $58.4 million.

Key States to Note: In the reported quarter, DISH lost 23,000 video customers. At quarter end, the company had 13.909 million video subscribers, down 0.9% year over year. Quarterly high-speed broadband customer addition was 13,000. At quarter end, the company had 608,000 high-speed Internet subscribers, up 10% year over year.

Pay-TV churn rate was 1.86% against 1.67% in the year-ago quarter. Pay-TV ARPU (average revenue per user) was $86.33 compared with $84.39 in the prior-year quarter. Pay-TV average subscriber acquisition cost was $736 against $861 in the year-ago quarter.

Check back later for our full write up on this DISH earnings report later!

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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