DISH beats revenue and subscriber expectations in Q1
Michelle Clancy | 09 May 2014
DISH Network, the second-largest US satellite TV provider has reported a better-than-expected 6% growth in quarterly revenue due to higher net subscriber additions.
The company added a net 40,000 subscribers in the quarter ended March 31, beating Wall Street expectations of adding 21,900. Subscriber additions improved as the rate of cancellations fell to 1.42% from 1.47% a year earlier. The company ended the quarter with 14.1 million pay-TV subscribers.
Revenue rose to $3.59 billion from $3.38 billion a year earlier — again beating expectations. Analysts had expected revenue of $3.58 billion. Average revenue per pay-TV user rose 5% to $82.36.
Net income however fell to $175.9 million, down from $215.6 million a year earlier as the company spent more on content and transmission. Total costs and expenses rose about 8%. The company said it expected expenses to increase especially going forward for acquiring content from local broadcast channels and for sports programming.
Earlier in the week, larger rival DirecTV reported that profit fell to $561 million, down from $690 million a year earlier. US net subscriber additions also fell, to 12,000 from 21,000 a year earlier. Analysts were expecting net additions of 14,000.