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DISH Network (DISH) Q1 Earnings Miss, Subscriber Count Down
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DISH Network 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
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.
Long-term earnings growth rate for Glu, GoPro and NutriSystem is currently pegged at 15%, 10% and 16.7%, respectively.
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DISH Network (DISH) Q1 Earnings Miss, Subscriber Count Down
DISH Network 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 , GoPro (GPRO - Free Report) and NutriSystem 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.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>