DISH Network Corp.DISH declared mixed financial results in the fourth quarter of 2016 wherein the bottom line surpassed the Zacks Consensus Estimate while the top line lagged the same.
Quarterly net income came in at $342.7 million or 70 cents per share compared with a net loss of $125.3 million or a loss of 27 cents in the year-ago quarter. Earnings per share of 70 cents outpaced the Zacks Consensus Estimate of 66 cents.
Total revenue in the reported quarter was approximately $3,724.2 million, down 1.4% year over year lagging the Zacks Consensus Estimate of $3,753 million.
In 2016, segment-wise, subscriber-related revenues grossed $15,033.9 million, up 0.5% from 2015. Equipment sales & other revenues totaled $60.6 million, down 47.4% from 2015.
In 2016, operating expenses were $12,883.5 million, down 6.2% year over year. Operating income was $2,211.1 million compared with $1,332.4 million in 2015. EBITDA at the end of 2016 was $3,261.8 million compared with $2,588.3 million in 2015.
As of Dec 31, 2016, DISH Network had approximately 13.671 million pay-TV subscribers compared with 13.897 million at the end of 2015. The company gained 28,000 pay-TV subscribers in the reported quarter compared with a loss of 12,000 in the year-ago quarter.
In 2016, the company lost 43,000 broadband subscribers in the reported quarter compared with a gain of 46,000 in 2015. At the end of 2016, DISH Network had 580,000 broadband subscribers in comparison with 623,000 at the end of 2015.
Pay-TV churn rate in 2016 was 1.83% against 1.71% in 2015. Pay-TV ARPU (average revenue per user) was $88.66 compared with $86.79 in 2015. Pay-TV average subscriber acquisition cost was $643 against $723 in 2015.
In 2016, DISH Network generated $2,802.2 million of cash from operations compared with $2,436.1 million in 2015. Free cash flow in 2016 was $1,474.8 million compared with $1,321.7 million in 2015.
At the end of 2016, DISH Network had $5,359.3 million of cash and marketable securities and $16,478.9 million of outstanding debt on its balance sheet compared with $1,611.1 million and $13,755.9 million, respectively, at the end of 2015. The debt-to-capitalization ratio at 2016-end was 0.77 compared with 0.82 at 2015-end.
DISH Network Corporation Price, Consensus and EPS Surprise
DISH Network currently carries a Zacks Rank #4 (Sell). The company faces intense competition in the pay-TV market from rival players like AT&T Inc. T , Comcast Corp. CMCSA and Charter Communications Inc. CHTR .
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