Dish Network surprised analysts Tuesday, reporting third quarter net new subscriber additions that far exceeded consensus estimates while its broadband service appears to be gaining steam.
Dish added 35,000 net new video customers in the quarter, well above analysts’ consensus estimates of a loss of 39,000 customers. Dish also added 75,000 broadband subscribers in the quarter, bringing its total number of high-speed data customers to 385,000, up 24% from the second quarter.
Total revenue was up about 2.2% to $3.6 billion from $3.52 billion in the prior year, while additional costs related to the net subscriber gains helped drive adjusted earnings before interest, taxes, depreciation and amortization down 5% $658 million. Dish managed to report a net income of $315 million (68 cents per share) for the period, compared to a net loss of $158 million (35 cents per share) in the prior year.
The good news helped lift the stock – Dish shares closed at $50.35 each on Nov. 12, up 6%, or $2.85 each.