Subscriber losses will continue to weigh Dish network revenues in 2019



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A specialist in Dish Network Corp.'s field services. is preparing to install a satellite television system in a Paramount, California home. Photographer: Patrick T. Fallon / Bloomberg& Acirc; & copy; 2015 Bloomberg Finance LP

Dish Network& nbsp; recently released its fourth quarter results. Revenues exceeded market expectations, but earnings per share were not achieved. In the fourth quarter, the company's revenues decreased 5% year-over-year to $ 3.3 billion primarily due to a decrease in the total number of subscribers pay TV at about 12.3 million, compared with 13.2 million the year before. The company ended the year 2018 with 9.9 million subscribers at DISH TV (down 1.1 million year on year) and 2.4 million subscribers at Sling TV ( +205 000 years). While the entire pay-TV field is struggling with cord cuts and other secular pressures, the impact on Dish has been considerable, as evidenced by the fact that it was not able to to maintain its subscriber base despite the positive contribution of Sling TV. In addition, Sling experienced an increase in its average revenue per user for the quarter, thanks to a combination of customers taking higher priced packages and additional revenue such as the cloud DVR. Dish Network also announced diluted net earnings per share of $ 0.64, compared with $ 2.64 in the fourth quarter of the previous fiscal year, impacted by a tax saving of about 1.2 billion USD resulting from an adjustment of deferred tax badets and liabilities related to tax reform legislation.

Dish Network The share price fell by around 50% in 2018, due to the persistent loss of subscribers, due to cord cuts and the growing popularity of streaming services offered by companies such as Netflix, Amazon& nbsp; and Hulu. However, we are maintaining our long-term price estimate for the company at $ 44, about 30% higher than the current market price. We created an interactive dashboard on How Dish Network gets out in 2018, which presents our forecasts for the Company's first quarter and fiscal year 2019 results. You can change our forecasts to see the impact of any change on the company's results. In addition, you can see all the data of the company Trefis Media. right here.

Q1 Trends

We expect Dish Network to continue to experience subscriber losses for the first quarter, which, combined with the pressures on the ARPU, will have a negative impact on revenue in the quarter. However, the company continues to offer "bundles" to attract customers to its pay TV services via Sling TV, which could offset some of the secular and competitive pressure. Overall, we expect the company to record a 5% drop in revenue for the first quarter, at approximately $ 3.3 billion.

Trefis

Outlook for the 2019 financial year

We expect Dish Network to generate revenues of over $ 13.3 billion for the year 2019 and a profit of about $ 1.3 billion. Our revenue forecast of about $ 13.3 billion represents a slight decline from one year to the next. Of the total revenues expected in 2019, we estimate $ 13.1 billion from subscription activities and over $ 180 million from equipment sales. In 2018, Dish Network has lost approximately 920,000 net subscribers to pay television, compared with a loss of approximately 284,000 net subscribers in the same period in 2017. We expect the total number of net subscribers to fall. The company's subscribers will continue to decline to establish at around 12.0 million, with an average monthly subscription. approximately $ 91 per subscriber, which will result in subscription revenues of $ 13.1 billion in 2019.

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A specialist in Dish Network Corp.'s field services. is preparing to install a satellite television system in a Paramount, California home. Photographer: Patrick T. Fallon / Bloomberg© 2015 Bloomberg Finance LP

Dish Network recently released its fourth-quarter results, with revenues surpbading market expectations, but earnings per share were not achieved. In the fourth quarter, the company's revenues decreased 5% year-over-year to $ 3.3 billion primarily due to a decrease in the total number of subscribers pay TV at about 12.3 million, compared with 13.2 million the year before. The company ended the year 2018 with 9.9 million subscribers at DISH TV (down 1.1 million year on year) and 2.4 million subscribers at Sling TV ( +205 000 years). While the entire pay-TV field is struggling with cord cuts and other secular pressures, the impact on Dish has been considerable, as evidenced by the fact that it was not able to to maintain its subscriber base despite the positive contribution of Sling TV. In addition, Sling experienced an increase in its average revenue per user for the quarter, thanks to a combination of customers taking higher priced packages and additional revenue such as the cloud DVR. Dish Network also announced diluted net earnings per share of $ 0.64, compared with $ 2.64 in the fourth quarter of the previous fiscal year, impacted by a tax saving of about 1.2 billion USD resulting from an adjustment of deferred tax badets and liabilities related to tax reform legislation.

Dish Network Stock prices fell by around 50% in 2018, due to persistent subscriber losses, due to the cut of the cord and the growing popularity of over-the-top streaming services offered by companies such as Netflix, Amazon and Hulu. However, we are maintaining our long-term price estimate for the company at $ 44, about 30% higher than the current market price. We created an interactive dashboard on How Dish Network gets out in 2018, which presents our forecasts for the Company's first quarter and fiscal year 2019 results. You can change our forecasts to see the impact of any change on the company's results. In addition, you can see all Trefis Media company data here.

Q1 Trends

We expect Dish Network to continue to experience subscriber losses for the first quarter, which, combined with the pressures on the ARPU, will have a negative impact on revenue in the quarter. However, the company continues to offer "bundles" to attract customers to its pay TV services via Sling TV, which could offset some of the secular and competitive pressure. Overall, we expect the company to record a 5% drop in revenue for the first quarter, at approximately $ 3.3 billion.

Outlook for the 2019 financial year

We expect Dish Network to generate revenues of over $ 13.3 billion for the year 2019 and a profit of about $ 1.3 billion. Our revenue forecast of about $ 13.3 billion represents a slight decline from one year to the next. Of the total revenues expected in 2019, we estimate $ 13.1 billion from subscription activities and over $ 180 million from equipment sales. In 2018, Dish Network has lost approximately 920,000 net subscribers to pay television, compared with a loss of approximately 284,000 net subscribers in the same period in 2017. We expect the total number of net subscribers to fall. The company's subscribers will continue to decline to establish at around 12.0 million, with an average monthly subscription. approximately $ 91 per subscriber, which will result in subscription revenues of $ 13.1 billion in 2019.

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