Posted by madcityradio.com on March 02, 2009 at 20:53:43:
iDGi: DISH Network profit rises even as subscribers fall
77 Square | Jeff Richgels | March 2, 2009
DISH Network Corp. on Monday reported its fourth-quarter profit rose 24 percent despite losing more than 100,000 subscribers and its results fell just short of Wall Street forecasts.DISH earned $217 million, or 48 cents per share, on sales of $2.92 billion in the fourth quarter, up from $175 million, or 39 cents per share, on sales of $2.89 billion a year earlier.
Analysts polled by Thomson Reuters expected profit of 49 cents per share on sales of $2.96 billion, the Associated Press reported.
The No. 2 satellite TV provider said it lost about 102,000 subscribers in the fourth quarter, leaving the company with 13.68 million subscribers as of Dec. 31. This is a drop of almost 1 percent from the 13.78 million customers it had at the end of 2007.
A poll of five Wall Street analysts had on average forecast DISH to add about 20,000 subscribers, Reuters reported.
The company ended the year with 13.7 million subscribers, down 102,000 from the end of 2007. However, average revenue per user increased to $69.27 from $65.83.
In its annual report filed with the Securities and Exchange Commission, DISH cited a number of factors for the drop, including the economy, aggressive promotional moves by competitors to get and keep subscribers, competitive marketing and the rise of fiber-based and Internet-based video companies.
DISH warned that these same factors could affect future subscriber additions and subscriber churn -- a measure of how many user quit the service -- which could in turn hurt revenue growth.
For the full year, DISH earned $902.9 million, or $1.98 per share, compared with $756.1 million, or $1.68 per share, in 2007. Revenues rose 5 percent to $11.62 billion.
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