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.
