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Dish loses subscribers, but revenue up

By Jeff Smith, Rocky Mountain News (Contact)

Published August 4, 2008 at 11:25 a.m.
Updated August 4, 2008 at 11:25 a.m.

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Douglas County-based Dish Network Corp., the country’s second largest satellite TV services provider, posted a net loss of 25,000 subscribers in its second quarter, as it continued to suffer from the weak economy.

The company’s financial results were fine, with second-quarter revenue up 5.6 percent to $2.91 billion compared with the same period in 2007.

Earnings totaled $336 million, or 75 cents a share, for the quarter ending June 30, up 50 percent from the same period a year ago.

Dish has been hurt more than rival DirecTV from the economy, partly because it has more subscribers susceptible to the housing downturn and rising foreclosure rate. Dish wound up the quarter with 13.79 million subscribers.

CEO Charlie Ergen, in a conference call with analysts, also blamed signal piracy and fraud, operational inefficiencies and TV competition from telcos and DirecTV.

“Obviously in the high-definition front we have not been as competitive as we would like in the second quarter,” Ergen said.

Earlier this year, a satellite failed to launch in its proper orbit, forcing Dish to rejigger its programming to stay on track with its high-def plans. The company now is hoping a recent successful satellite launch will enable it to narrow the gap with DirecTV.

Dish shares dropped 6 percent to a little more than $27 in early trading Monday.

Comments

  • August 4, 2008

    6:46 p.m.

    Suggest removal

    dj80long writes:

    .....Dish has been hurt more than rival DirecTV from the economy, partly because it has more subscribers susceptible to the housing downturn and rising foreclosure rate....

    I'd like to see a better explanation of that statement. Sounds like mumbo jumbo to me.

  • August 4, 2008

    10:32 p.m.

    Suggest removal

    roger44 writes:

    I was thinking of getting dish, but sure not going to sign up for a 2 year obligation.