Dish Network reported lower earnings in 2015 after a large drop in the number of paid subscribers and wireless airwaves auction expenses. This caused the #2 satellite television providers stock to drop a full 4% on Thursday.
A spokeperson for Dish states that their net income fell 21% from 2014 to $747.1 million, which averages to about $1.61 per share. An FCC auction of wireless airwaves cost Dish $516 million in added expense, along with an asset impairment charge of $123 million also impacted their final earnings statement.
The pay-television industry has been hit hard as many younger subscribers cut the cord, or ditch the dish, and go with internet options such as Netflix and Hulu. At the end of 2015, Dish had 13.9 million subscribers to their cheaper Sling-TV, which costs a mere $20, but even this is a decline of about 81,000 subscribers from 2014.
As Dish subscribers opt out in droves, you have to wonder exactly what CEO Charlie Ergen is going to do with all the wireless airwaves that the company has spent billions of dollars on, stockpiling them through the years.
Dish filed an application with the FCC to see if they could possibly participate in the government’s upcoming airwave auction that is scheduled for March of 2016. While exec’s for Dish declined to discuss details of their strategy for this auction, Dish actually has spectrum that could potentially be worth $45 billion in pretax dollars or about $32 billion after tax adjustments, more or less.
For the full year, revenue grew a modest 3% to $15.07 billion, which is above what analysts expected but after deducting costs, net revenue was down $125.3 million. Dish Network is publicly traded on the NASDQ under the ticker symbol: DISH.O. Fourth quarter shares were down last quarter about 27 cents overall.
Perhaps it’s time that Dish consider selling some of their wireless airwaves and look towards the future by offering up some cheaper internet based programs that will appeal to the younger, Netflix crazed crowd.
Source: Reuters
xDish Network reported lower earnings in 2015 after a large drop in the number of paid subscribers and wireless airwaves auction expenses. This caused the #2 satellite television providers stock to drop a full 4% on Thursday.
A spokeperson for Dish states that their net income fell 21% from 2014 to $747.1 million, which averages to about $1.61 per share. An FCC auction of wireless airwaves cost Dish $516 million in added expense, along with an asset impairment charge of $123 million also impacted their final earnings statement.
The pay-television industry has been hit hard as many younger subscribers cut the cord, or ditch the dish, and go with internet options such as Netflix and Hulu. At the end of 2015, Dish had 13.9 million subscribers to their cheaper Sling-TV, which costs a mere $20, but even this is a decline of about 81,000 subscribers from 2014.
History
As Dish subscribers opt out in droves, you have to wonder exactly what CEO Charlie Ergen is going to do with all the wireless airwaves that the company has spent billions of dollars on, stockpiling them through the years.
Dish filed an application with the FCC to see if they could possibly participate in the government’s upcoming airwave auction that is scheduled for March of 2016. While exec’s for Dish declined to discuss details of their strategy for this auction, Dish actually has spectrum that could potentially be worth $45 billion in pretax dollars or about $32 billion after tax adjustments, more or less.
For the full year, revenue grew a modest 3% to $15.07 billion, which is above what analysts expected but after deducting costs, net revenue was down $125.3 million. Dish Network is publicly traded on the NASDQ under the ticker symbol: DISH.O. Fourth quarter shares were down last quarter about 27 cents overall.
Perhaps it’s time that Dish consider selling some of their wireless airwaves and look towards the future by offering up some cheaper internet based programs that will appeal to the younger, Netflix crazed crowd.
Source: Reuters