Dish Network Corp reported quarterly revenue that fell short of market estimates as more subscribers dropped its pay-TV service and growth in its online streaming service Sling TV showed signs of faltering. The company said on Monday it had lost about 23,000 pay-TV subscribers on a net basis in the quarter ended September 30, compared with a loss of about 12,000 a year earlier.
User defections rose to 1.86 percent of the company's subscriber base, compared with the 1.69 percent analysts surveyed by research firm FactSet StreetAccount had expected. Dish, whose shares were down 2.4 percent in early trading, has been trying to woo young viewers away from cable and satellite services to its cheaper Sling TV streaming service.
The $20-per-month Sling TV service lets viewers watch television over the Internet. Dish, the No 2 US satellite TV company by revenue, does not break out Sling TV numbers. However, brokerage MoffettNathanson LLC estimated the company added just 24,000 subscribers in the quarter. Dish has been losing pay-TV subscribers in an increasingly competitive market as rivals offer discounts. Dish said its average revenue per pay-TV user rose to $86.33 in the third quarter from $84.39 a year earlier. Net income attributable to Dish rose 34.2 percent to $196 million, or 42 cents per share. Revenue rose marginally to $3.73 billion. Analysts on average had expected earnings of 39 cents per share and revenue of $3.79 billion, according to Thomson Reuters I/B/E/S.
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