Dish Shares Plummet After Losing Subscribers (DISH)
DISH Network Corp. (NASDAQ: DISH) shares tumbled more than 10% Monday after the company reported that it lost 19,000 subscribers in the second quarter.
Todd Mitchell, an analyst at Kaufman Bros. LP in New York, had predicted a gain of 130,000 subscribers. “Churn is a real issue, you’re seeing a lot of former subscribers coming off Dish’s $19.99 offer and not coming back,” Mitchell said, referring to a promotion that had helped Dish win customers in recent years. “Competition has hurt them and clearly DirecTV is doing better.”
According to a Bloomberg report, "Dish, which had offered discounts and run promotions such as “Free HD for Life” to lure users, attributed the decline to competitive pressures and customers rolling off their contracts. "
“We haven’t seen any significant improvement in the economy in general," executive vice president Tom Cullen said. “As the value provider in the industry, we feel that more than others.”
Dish’s net income rose to $257 million, or 57 cents a share, from $63 million, or 14 cents, a year ago. Revenues gained 9.1% to $3.17 billion. Analysts projected profit of 53 cents on sales of $3.13 billion, according to Bloomberg consensus estimates.
Shares of DISH are down more than 10.5% Monday, to $18.60.
