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DISH Network (DISH) Q1 Earnings Miss, Subscriber Count Down

DISH NetworkDISH delivered first-quarter 2018 earnings of 70 cents per share that missed the Zacks Consensus Estimate by couple of cents and declined 7.9% year over year.

Revenues slumped 6% year over year to $3.46 billion, lagging the Zacks Consensus Estimate of almost $3.50 billion.

Shares declined 2.5% in pre-market trading . DISH has lost 29% on a year-to-date basis, compared with the industry 's decline of 17.4%.

Segment Details

Subscriber-related revenues (99% of revenues) declined 6.1% from the year-ago quarter to $3.42 billion. Pay-TV video and related revenues fell 5.3% to $3.35 billion. Broadband revenues plunged 30.2% year over year to $75.1 million.

Equipment sales and other revenues dipped 1% to $35.8 million.

DISH Network Corporation Price, Consensus and EPS Surprise

DISH Network Corporation Price, Consensus and EPS Surprise | DISH Network Corporation Quote

United States contributed 99.7% of revenues which declined 6% year over year to $3.45 billion. Canada and Mexico contributed the rest of the revenues which fell 1% from the year-ago quarter to $9.5 million.

Subscriber Loss Continues

DISH exited the quarter with 10.845 million DISH TV subscribers and 2.303 million Sling TV subscribers. Total Pay-TV subscribers were 13.148 million, down from 13.528 million reported in the year-ago quarter.

Net Pay-TV subscribers declined approximately 94K as compared with a decline of roughly 143K in the year-ago quarter. Pay-TV average revenue per user (ARPU) declined from year-ago quarter's figure of $86.55-$84.50.

Net DISH TV subscribers declined approximately 185K and Sling TV subscribers increased almost 91K.

DISH TV's average monthly subscriber churn rate was 1.47% against year-ago quarter's 1.92%.

Operating Details

In the first quarter, subscriber-related expenses declined 2.6% year over year to $2.18 billion. However, as percentage of revenues, subscriber-related expenses expanded 220 basis points (bps) on a year-over-year basis to 63.2%.

Total subscriber acquisition costs (SACs) plunged 32.4% from the year-ago quarter to $196 million. As percentage of revenues, SACs declined 220 bps to 5.7%.

Operating income declined 12.8% year over year to $529.5 million. Operating margin fell 120 bps to 15.3% in the reported quarter.

Balance Sheet & Cash Flow

As of Mar 31, 2018, cash & cash equivalents (including marketable investment securities) were $2.35 billion as compared with $2.05 billion as of Dec 31, 2017.

Cash flow from operating activities was $751.6 million, while free cash flow was $387 million.

Zacks Rank & Stocks to Consider

Currently, DISH carries a Zacks Rank #3 (Hold).

Glu Mobile GLUU , GoPro GPRO and NutriSystem NTRI are stocks worth considering in the broad consumer discretionary sector. All the three stocks carry Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Long-term earnings growth rate for Glu, GoPro and NutriSystem is currently pegged at 15%, 10% and 16.7%, respectively.

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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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