Struggling satellite operator DISH Network reported that Q3 net income was $92 million ($0.20 per share), down 54 percent from last year’s $200 million ($0.45 per share). The company attributed the plunge to impairment charges related to its investments. Aside from trouble with its securities portfolio, the Englewood, CO-based company said it lost roughly 10,000 subscribers, ending the quarter with 13.78 million subs. On the plus side, revenues were up 7.4 percent to $2.9 million from Q307’s $2.7 million.
— Average customer revenue rose 5.8 percent to $69.82.
— The cost of acquiring new customers was up 13.8 percent to $735.
— Churn rate was 2.02 percent, compared to 1.94 percent in Q307. DISH is telling investors not to expect a reduction in its churn rate — at least not without significantly increasing spending on customer retention incentives, “which would have a negative effect on our earnings and free cash flow.”
Release | 10-Q | Webcast | Transcript (via Seeking Alpha)
{"source":"https:\/\/gigaom.com\/2008\/11\/10\/419-earnings-dish-profits-decline-on-investment-charges-as-subs-drop-revs-u\/wijax\/49e8740702c6da9341d50357217fb629","varname":"wijax_dc0844753239501bda2830293a240718","title_element":"header","title_class":"widget-title","title_before":"%3Cheader%20class%3D%22widget-title%22%3E","title_after":"%3C%2Fheader%3E"}