Dish Network's Q3 profits rise 30 percent, but subscriber base diminishes
The third fiscal quarter of this year saw the best of times and the worst of times for Dish Network. On the positive side of the ledger, the company saw net revenues grow by 12.3 percent since Q3 2010, reaching $3.6 billion. Profits, meanwhile, jumped by 30.3 percent over the year to $319 million, compared with the $245 million it raked in during the third quarter of 2010. Dish said the jump in revenues could be partially attributed to its acquisition of Blockbuster and the subsequent launch of Blockbuster Movie Pass, which the company hopes to expand and build upon going forward. The report wasn't entirely rosy, however, as Dish Network saw a net loss of about 111,000 subscribers during the quarter (about 20,000 more than analysts had predicted), bringing its total to approximately 14 million customers. By contrast, during the third quarter of last year, the company added about 327,000 users. But this decline didn't stop Dish from doling out a rare $2.00 per share dividend to investors, which may make its less savory results a bit easier on the stomach. Check out the full report, after the break.
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DISH Network Announces Third Quarter 2011 Financial Results
DISH Network Revenues Grow by 12.3 Percent to $3.60 Billion and Net Income Increases 30.3 Percent to $319 Million; DISH Declares Non-Recurring Dividend
ENGLEWOOD, CO, Nov 07, 2011 (MARKETWIRE via COMTEX) -- DISH Network Corporation DISH +2.35% today reported its third quarter 2011 financial results.
Revenue totaled $3.60 billion for the quarter ended Sept. 30, 2011, a 12.3 percent increase compared with $3.21 billion for the corresponding period in 2010. Net income attributable to common shareholders totaled $319 million for the quarter ended Sept. 30, 2011, a 30.3 percent increase compared with $245 million during the same period last year. Diluted earnings per share were $0.71 for the third quarter, compared with $0.55 during the same period in 2010. DISH Network's net subscribers decreased by approximately 111,000 during the third quarter, and the company ended Sept. 30, 2011, with approximately 13.945 million subscribers.
"DISH delivered another quarter of strong growth in net income compared to the same period last year," said Joe Clayton, president and CEO of DISH Network. "Our net subscriber loss improved over the second quarter of this year but continued to be affected by increased competitive pressures, including aggressive competitive promotional offers, discounting and a weak housing market. Going forward, we plan to build on the momentum of our introduction of the Blockbuster-branded programming service which allows DISH customers to stream movies and TV shows as well as receive DVDs by mail."
Detailed financial data and other information are available in DISH Network's Form 10-Q for the quarterly period ended Sept. 30, 2011, filed today with the Securities and Exchange Commission.
DISH Network will host its third quarter 2011 financial results conference call today at noon ET. The dial-in number is (800) 616-6729.
Non-Recurring Dividend On Nov. 1, 2011, DISH Network Corporation's Board of Directors declared a non-recurring dividend of $2.00 per share on outstanding Class A and Class B common stock. The dividend will be payable in cash on Dec. 1, 2011, to shareholders of record on Nov. 17, 2011.
