Dish Network reported mixed Q4 results: The satellite TV provider beat Wall Street analysts’ sales estimates, but profits missed, and growth tanked during what’s usually a strong quarter.
Dish reported Q4 sales of $2.89 billion, up 12% year-over-year and beating the Street’s $2.86 billion consensus. EPS came in at 39 cents per share, missing the Street’s 45 cents per share consensus. Fourth quarter net income grew 14% y/y to $175 million.
Most troubling: Lousy growth numbers. The company added 85,000 net new subscribers during Q4, which is usually a strong quarter (lots of new TV purchases). For comparison, the company added 110,000 net subs during Q3, and during Q4 2006, the company grew by 350,000 net subs.
Why the decline? In its annual report to the SEC, the company listed several reasons:
- Competitors’ aggressive promotional offers
- Satellite launch delays, which prevent Dish Network from offering local HD channels in some markets, giving competitors an edge
- Worsening economic conditions, including slowing new housing starts
- Piracy and other forms of fraud
The company will host its Q4 conference call at noon.
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