Advertisement
Singapore markets closed

  • Straits Times Index

    3,272.72
    +47.55 (+1.47%)
     

  • S&P 500

    5,010.60
    +43.37 (+0.87%)
     

  • Dow

    38,239.98
    +253.58 (+0.67%)
     

  • Nasdaq

    15,451.31
    +169.30 (+1.11%)
     

  • Bitcoin USD

    66,165.46
    +268.54 (+0.41%)
     

  • CMC Crypto 200

    1,420.34
    +5.58 (+0.39%)
     

  • FTSE 100

    8,043.55
    +19.68 (+0.25%)
     

  • Gold

    2,316.20
    -30.20 (-1.29%)
     

  • Crude Oil

    81.29
    -0.61 (-0.74%)
     

  • 10-Yr Bond

    4.6230
    +0.0080 (+0.17%)
     

  • Nikkei

    37,552.16
    +113.55 (+0.30%)
     

  • Hang Seng

    16,828.93
    +317.24 (+1.92%)
     

  • FTSE Bursa Malaysia

    1,561.64
    +2.05 (+0.13%)
     

  • Jakarta Composite Index

    7,110.81
    +36.99 (+0.52%)
     

  • PSE Index

    6,506.80
    +62.72 (+0.97%)
     

DISH Network (DISH) Q1 Earnings Lag, User Base Declines Y/Y

Zacks Equity Research
·4-min read

DISH Network’s DISH first-quarter 2020 earnings of 13 cents per share missed the Zacks Consensus Estimate by 77.2% and also plunged 80% year over year.

Revenues inched up 0.9% year over year to $3.22 billion and also surpassed the consensus mark by 2.9%.

The United States revenues climbed 0.8% year over year to $3.20 billion. Canada and Mexico revenues surged 46.4% from the year-ago quarter to $15.9 million.

DISH exited the reported quarter with 9.012 million DISH TV subscribers, down 6.1%, and 2.311 million Sling TV subscribers, down 4.7%. Total Pay-TV subscribers were 11.323 million, down 6.1% year over year.

It goes without saying that the coronavirus adversely impacted DISH’s first-quarter results. The pandemic caused severe disruption in certain commercial segments served by the company including the hospitality and airline industries.

DISH Network Corporation Price

DISH Network Corporation Price
DISH Network Corporation Price

DISH Network Corporation price | DISH Network Corporation Quote

ADVERTISEMENT

 

Moreover, in a bid to avoid charging commercial customers for services that were no longer viewed by them, DISH pulled the plug on services or provided a temporary rate relief.

Those commercial accounts including the ones that DISH expects to disconnect represent roughly 250,000 subscribers, which DISH removed from its ending Pay-TV subscriber count as of Mar 31, 2020.

Top-Line Details

Subscriber-related revenues (98.4% of revenues) increased 0.6% from the year-ago quarter to $3.17 billion. Equipment sales and other revenues surged 30.4% to $51.3 million.

Pay-TV video and related revenues climbed 1.1% to $3.13 billion. Equipment sales and other revenues jumped 30.4% year over year to $51.3 million. However, broadband revenues dropped 29.5% year over year to $35.1 million.

The company lost 413K net Pay-TV subscribers in the reported quarter compared with 259K lost a year ago. Moreover, DISH lost nearly 281K net Sling TV subscribers and 132K DISH TV subscribers.

However, Pay-TV ARPU increased 4.4% year over year to $88.76. Additionally, the churn-out rate was 1.54% compared with the year-ago quarter’s 1.74%.

Operating Details

In the first quarter, subscriber-related expenses dipped 2.2% year over year to $1.96 billion. As a percentage of revenues, subscriber-related expenses declined 200 basis points (bps) on a year-over-year basis to 60.9%.

Subscriber acquisition costs (SACs) flared up 30.9% from the year-ago quarter to $253.9 million. As a percentage of revenues, SACs expanded 180 bps to 7.9%.

DISH TV SAC was $861, up 4% year over year.

EBITDA dropped 52% year over year to $286.3 million. Operating income also plunged 68.4% year over year to $144.1 million.

Balance Sheet

As of Mar 31, 2020, cash, cash equivalents and current marketable investment securities were $2.83 billion compared with $2.44 billion as of Dec 31, 2019.

Total debt as of Mar 31, 2020 was $14.15 billion compared with $14.14 billion as of Dec 31, 2019.


Zacks Rank & Other Stocks to Consider

DISH currently carries a Zacks Rank #2 (Buy). Electronic Arts EA, Netflix NFLX and Roku ROKU are some other stocks worth considering in the broader consumer discretionary sector. While Electronic Arts sports a Zacks Rank #1 (Strong Buy), both Netflix and Roku carry the same Zacks Rank as DISH. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for EA, Netflix and Roku is pegged at 8.2%, 30% and 11.5%, respectively.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
DISH Network Corporation (DISH) : Free Stock Analysis Report
 
Netflix Inc (NFLX) : Free Stock Analysis Report
 
Electronic Arts Inc (EA) : Free Stock Analysis Report
 
Roku Inc (ROKU) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research