Dish Network Win And Loss
By Jim
After aggressive subscription and package cuts, Dish Network has added just shy of 250,000 new subscribers. While the new customers is a plus, Dish was still marred by a 17.5% drop in net income when compared to a year ago. While the share difference of a year ago was eight cents less, it was still eight cents more than analysts had been forecasting for the fourth quarter. As a result, revenue for the company rose ever so slightly by 1.4% to $2.96B, just slightly ahead of what was projected.
After posting four straight quarters of subscriber declines, things are seem to slowly be turning around for Dish. It seems as though maybe the aggressive marketing and financing strategies are working. Sure, they might’ve gotten down and dirty with the smear campaign wagered against DirecTV. But drastic times call for drastic measures. It should be said that most of pay TV providers reported less-than-impressive subscriber additions, and Dish was the only real winner when it came to attracting new subscribers. Comcast, Time Warner, and Cablevision Systems all lost video customers in the fourth quarter.
If you were a stockholder in Dish, you lost $1.98 per share, a loss of about 30% per share. But there are always ups and downs in the financial market. I’m no Wall street analyst but it could be a great time to invest in Dish, both as a subscriber and a stockholder. The old adage of “buy low, sell high” is in effect here. The positive turnaround, no matter how small, is a great sign for Dish Network.
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