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DISH Network (DISH) Q3 Earnings Beat, Revenues Down Y/Y
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DISH Network reported third-quarter 2019 earnings of 66 cents per share, beating the Zacks Consensus Estimate by 11.9%. The figure, however, declined 19.5% year over year.
Revenues also declined 6.7% year over year to $3.17 billion but surpassed the consensus mark by 0.9%.
The United States revenues declined 6.6% year over year to $3.16 billion. Canada and Mexico revenues decreased 21.9% from the year-ago quarter to $11.5 million.
DISH exited the reported quarter with 9.494 million DISH TV subscribers, down 7.7%, and 2.686 million Sling TV subscribers, up 13.3%. Total Pay-TV subscribers were 12.180 million, down 3.8% year over year.
Quarter Details
Subscriber-related revenues (98.4% of revenues) declined 6.9% from the year-ago quarter to $3.12 billion. Equipment sales and other revenues increased 11.8% to $51.2 million.
Pay-TV video and related revenues fell 6.6% to $3.17 billion. Broadband revenues dropped 23.6% year over year to $46.3 million.
The company added approximately 148K net Pay-TV subscribers in the reported quarter. DISH had lost roughly 341K net Pay-TV subscribers in the year-ago quarter.
Moreover, DISH added nearly 214K net Sling TV subscribers in the third quarter compared with 26K net Sling TV subscribers added in the year-ago quarter.
However, Pay-TV ARPU edged down 1.2% year over year to $85.29. Additionally, the churn rate was 1.69% compared with the year-ago quarter’s 2.11%.
In the third quarter, subscriber-related expenses declined 8.9% year over year to $1.93 billion. As percentage of revenues, subscriber-related expenses shrunk 150 basis points (bps) on a year-over-year basis to 61.1%.
Total subscriber acquisition costs (SACs) flared up 52.9% from the year-ago quarter to $285.8 million. As percentage of revenues, SACs expanded 350 bps to 9%.
DISH TV SAC was $827, up 14.7% year over year primarily due to rise in advertising, installation costs per activation and hardware costs.
EBITDA decreased 19.5% year over year to $597.4 million. EBITDA margin contracted 300 bps on a year-over-year basis to 18.9%.
Operating income fell 16.7% year over year to $468.9 million. Operating margin contracted 180 bps to 14.8%.
Balance Sheet
As of Sep 30, 2019, cash, cash equivalents and current marketable investment securities were $1.66 billion compared with $2.73 billion as of Jun 30, 2019.
While both Cumulus and Liberty Media are set to release quarterly results on Nov 11, Entercom is scheduled to report on Nov 8.
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DISH Network (DISH) Q3 Earnings Beat, Revenues Down Y/Y
DISH Network reported third-quarter 2019 earnings of 66 cents per share, beating the Zacks Consensus Estimate by 11.9%. The figure, however, declined 19.5% year over year.
Revenues also declined 6.7% year over year to $3.17 billion but surpassed the consensus mark by 0.9%.
The United States revenues declined 6.6% year over year to $3.16 billion. Canada and Mexico revenues decreased 21.9% from the year-ago quarter to $11.5 million.
DISH exited the reported quarter with 9.494 million DISH TV subscribers, down 7.7%, and 2.686 million Sling TV subscribers, up 13.3%. Total Pay-TV subscribers were 12.180 million, down 3.8% year over year.
Quarter Details
Subscriber-related revenues (98.4% of revenues) declined 6.9% from the year-ago quarter to $3.12 billion. Equipment sales and other revenues increased 11.8% to $51.2 million.
Pay-TV video and related revenues fell 6.6% to $3.17 billion. Broadband revenues dropped 23.6% year over year to $46.3 million.
The company added approximately 148K net Pay-TV subscribers in the reported quarter. DISH had lost roughly 341K net Pay-TV subscribers in the year-ago quarter.
DISH Network Corporation Price
DISH Network Corporation price | DISH Network Corporation Quote
Moreover, DISH added nearly 214K net Sling TV subscribers in the third quarter compared with 26K net Sling TV subscribers added in the year-ago quarter.
However, Pay-TV ARPU edged down 1.2% year over year to $85.29. Additionally, the churn rate was 1.69% compared with the year-ago quarter’s 2.11%.
In the third quarter, subscriber-related expenses declined 8.9% year over year to $1.93 billion. As percentage of revenues, subscriber-related expenses shrunk 150 basis points (bps) on a year-over-year basis to 61.1%.
Total subscriber acquisition costs (SACs) flared up 52.9% from the year-ago quarter to $285.8 million. As percentage of revenues, SACs expanded 350 bps to 9%.
DISH TV SAC was $827, up 14.7% year over year primarily due to rise in advertising, installation costs per activation and hardware costs.
EBITDA decreased 19.5% year over year to $597.4 million. EBITDA margin contracted 300 bps on a year-over-year basis to 18.9%.
Operating income fell 16.7% year over year to $468.9 million. Operating margin contracted 180 bps to 14.8%.
Balance Sheet
As of Sep 30, 2019, cash, cash equivalents and current marketable investment securities were $1.66 billion compared with $2.73 billion as of Jun 30, 2019.
Zacks Rank & Stocks to Consider
DISH currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader consumer discretionary sector include Cumulus Media (CMLS - Free Report) , Entercom Communications and Liberty Media Corp (FWONK - Free Report) . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
While both Cumulus and Liberty Media are set to release quarterly results on Nov 11, Entercom is scheduled to report on Nov 8.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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