Dish cold on subs growth but Q3 profit hot | Major Businesses | Business
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Dish Network saw an exodus of 341,000 video subscribers during the third quarter – and for the first time, gains for its OTT offering, Sling TV, weren’t enough to offset the loss on the satellite side.

dish 8 nov 2018That said, profit was significantly up: Net income totalled $432 million, up from $297 million during the same quarter in 2017. The increase was due to “positive impact by noncash adjustments related to the adoption of the ASC 606 revenue recognition standard,” according to the company.

Still, Sling TV subscribers only increased by about 26,000 additions; while Dish saw its average monthly churn rate for satellite subscriptions balloon to 2.11% -- a big jump from 1.82% in the year-ago quarter. That translated to an overall decline of 367,000 satellite customers, compared with gaining 16,000 video subscribers this time last year.

In total, the company has nearly 10.3 million Dish TV subscribers and 2.37 million Sling TV subscribers.

Despite the losses, it beat expectations on revenue. In addition to the stellar profit gains, the company reported total revenues of $3.4 billion for the quarter, $10 million ahead what Wall Street expected.

Going forward, Dish said that it plans to focus on the promise of 5G – an expected move given that it doesn’t have a terrestrial network to deliver the triple play. It said in an SEC filing that it expects expenditures for its wireless projects to be between $500 million and $1 billion through 2020, and that the second phase of its network deployment will cost approximately $10 billion.

“We will need to make significant additional investments or partner with others to, among other things, commercialise, build-out, and integrate these licenses and related assets, and any additional acquired licenses and related assets; and comply with regulations applicable to such licenses,” the company wrote in the filing.