Q2 2016 – Dish Earnings Call Summary

Dish

Below are my key takeaways from the Dish Q2 2016 Earnings Call on July 21:

Summary:

Lost 281K subs, both satellite and Sling TV, finishing the quarter with 13.593MM pay-TV subscribers.  The quarterly loss is worst in history.  However, subscriber-related revenue grew 0.7% from last year Q2, due to price increases for Sat TV, while equipment sales and other revenues fell 65.1%.

Loss 15k dishNet subs (Satellite Internet) due to a stricter acquisition policy of focusing on higher-quality subscribers, satellite capacity constraints in certain areas and a higher number of disconnects.

Launched Sling Blue, a live beta multi-stream Sling domestic service, with the ability to stream on up to 3 devices simultaneously.  The single-stream service was rebranded Sling Orange.

Mid June saw Tribune TV stations (e.g. WGN America) removed from Dish lineups.

Financial Metrics:

  • Total Revenue: $3,837MM, +0.1% YoY
    • $Q2 2015: 3,832MM
  • Revenue from Equipment Sales and Other: $11MM, -65.1% YoY
    • Q2 2015: $31MM
  • Net Income: $410MM, +26.5% YoY
    • Q2 2015: $324MM
  • Diluted EPS: $0.88, +25.7% YoY
    • Q2 2015: $0.70
  • ARPU: $89.98, +2.4% YoY
    • Q2 2015: $87.91

Pay-TV Subscriber Metrics:

  • Total: 13.593MM, -2.4% YoY
    • Q2 2015: 13.932MM
  • Gross Additions: +0.527MM, -17.4% YoY
    • Q2 2015: +0.638MM
  • Net Additions: -0.281MM
    •  Q2 2015: -0.081MM
  • Churn: 1.96%, +14.6% YoY
    • Q2 2015: 1.71%

Broadband Subscriber Metrics:

  • Total: 0.613MM, +3.0% YoY
    • Q2 2015: 0.595MM

List of Key Properties:

Forward Thinking:

  • May have to increase subscriber acquisition and retention spending to combat increasing competition
  • Continue to improve operational performance and customer satisfaction
  • Will seek to commercialize their wireless spectrum licenses

Links to Company Website:

Please comment below if there are data points from Dish you’d like me to include in their next Earnings Call Summary.

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