Dish misses profit expectations, but limits subscriber losses

Industries Reuters

(Reuters)

Dish Network on Thursday reported a quarterly profit that missed analysts' estimates, but the company lost fewer subscribers than expected.

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The company said it lost about 196,000 net pay-TV subscribers in the second quarter ended June 30. The number includes subscribers to both its satellite TV and Sling TV services.

The loss came in below analysts' average expectation of 256,000 subscribers, according to financial data and analytics firm FactSet.

Net income attributable to Dish plunged 90 percent to $40 million or 9 cents per share in the quarter, hurt by litigation expenses, net of taxes, of $280 million.

Excluding one-time items, Dish earned 69 cents per share, missing analysts' average estimate of 75 cents, according to Thomson Reuters I/B/E/S.

Dish, like other pay-TV providers, is facing stiff competition from video streaming services such as Netflix, Hulu and HBO Live, as more viewers prefer to go online for their entertainment.

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In 2015, Dish launched its own streaming service, Sling TV, to attract younger viewers, who are increasingly shifting away from traditional television services.

Dish said second-quarter revenue dipped nearly 6 percent to $3.64 billion. Analysts on an average had expected $3.72 billion.

(Reporting by Laharee Chatterjee in Bengaluru; Editing by Sai Sachin Ravikumar)