Sub Losses Nearly Double at Dish

Satellite Giant Beats Revenue, OCF Estimates
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Dish Network lost about 81,000 net subscribers in the second quarter, nearly twice the 44,000 it lost in the prior year, but a focus on higher-margin customers helped drive revenue and net income up by 3.9% and 52%, respectively.

Revenue at the second largest satellite TV service provider was $3.83 billion in the quarter, up 3.9% from $3.69 billion in the prior year. Net income rose 52% to $324 million (70 cents per share) from $213 million (46 cents per share) in the period. Cash flow at $796.9 million nwas up 9.7% from the prior year and beat anlaysts' estimates by about $40 milion. Revenue for the period was about 150 basis points ahead of consensus estimates.

Average monthly revenue per unit in the period totaled $87.91, compared with $84.15 in the prior year. Churn was 1.71% versus 1.66% in the second quarter of 2014.

Dish also added about 4,000 net broadband subscribers in the second quarter, bringing its broadband subscriber base to approximately 595,000.