Dish Network Corp. profit falls 18 percent to $175.9M in Q1

Nathan Andrada – Fourth Estate Cooperative Contributor

Englewood, CO, United States (4E) – Dish Network Corp. reported an 18 percent fall in first-quarter profit as the company’s higher expenses offset an increase in revenue.

The satellite-television provider said earnings stood at $175.9mn, or 38 cents per share, compared with $215.6mn, or 47 cents per share, in the previous year.

Revenue climbed 6.5 percent to $3.59bn, but total expenses surged 7.7 percent.

The figures come at a time of potential consolidation in the pay-TV market, as Comcast Corp. and Time Warner Cable Inc.– the two largest cable companies—are looking to merge in a $45bn transaction. Meanwhile, AT&T Inc. is also approaching DirecTV for a possible merger.

More than a decade ago, Dish attempted to do a tie-up with DirecTV. Dish CEO Charlie Ergen recently said that his company could consider reviving its plan to strike a deal with DirecTV.

Dish added 40,000 subscribers for its net pay-TV service, compared with a net gain of 36,000 in the year-ago period. At the end of the period, the company has around 14.1 million pay-TV subscribers, nearly unchanged from the previous year.

The company, which has struggled to increase its subscriber numbers, also added around 53,000 net broadband subscribers in the period, compared with 66,000 new users a year ago.

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