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DISH Network Reports Surprise Q3 Loss as Subscribers Decline, CEO Carlson to Step Down Amid EchoStar Merger

DISH Network sees share value plummet as Q3 loss of $0.26 per share, increased competition from streaming services, and a net decline of 64,000 Pay-TV customers amidst efforts at expansion into the wireless market.

Overview

  • Dish Network reported a surprise Q3 loss of $0.26 per share, revenue fell by 9.5% from a year ago to $3.7 billion, both below analysts’ estimates.
  • The company witnessed a decline in subscribers, with a net loss of 64,000 Pay-TV subscribers, including a decline of 181,000 Dish TV subscribers, and an increase of 118,000 at Sling TV.
  • Dish Network is selling off its assets in Puerto Rico and the Virgin Islands to Liberty Latin America for $256 million, aiming to raise capital for developing its U.S. wireless business.
  • CEO Erik Carlson is set to step down on Nov. 12 following the impending merger with satellite operator EchoStar, which is expected to establish a nearly $6 billion company. EchoStar CEO Hamid Akhavan will replace Carlson.
  • The decline in subscriptions is attributed to increased competition from streaming services like Netflix and Disney+, and disagreements over distribution rates, as seen by the removal of customer access to 37 local channels after failed negotiations with U.S.-based Hearst Television.