DISH Network pay TV subscribers down 78,000 in 2Q 2013

DISH Network Reports Second Quarter 2013 Financial Results

ENGLEWOOD, Colo. — DISH Network Corporation (NASDAQ: DISH) today reported revenue totaling $3.61 billion for the quarter ending June 30, 2013, compared to $3.57 billion for the corresponding period in 2012. Subscriber-related revenue increased 4.9 percent to $3.46 billion from $3.30 billion in the year-ago period.

Pay-TV ARPU for the second quarter totaled $80.90 compared to the year-ago period’s pay-TV ARPU of $77.59. Pay-TV subscriber churn rate increased to 1.67 percent versus 1.60 percent for second quarter 2012, impacted by DISH’s first programming package price increase in two years.

DISH added approximately 624,000 gross new pay-TV subscribers compared to approximately 665,000 gross new pay-TV subscribers in the prior year’s second quarter. Total subscribers declined approximately 78,000 in the second quarter. The company ended the second quarter with 14.014 million pay-TV subscribers compared to 14.061 million pay-TV subscribers at the end of second quarter 2012.

Pay TV

                                  2Q12    3Q12    4Q12    1Q13    2Q13
                                ------  ------  ------  ------  ------
Subscribers (thousands)         14,061  14,042  14,056  14,092  14,014
Net Additions (thousands)         (10)    (19)      14      36    (78)
Gross Activations (thousands)      665     739     662     654    624
Churn Rate                       1.60%   1.80%   1.54%   1.47%   1.67%
ARPU                            $77.59  $76.99  $77.59  $78.54  $80.90

DISH added approximately 61,000 net broadband subscribers in the second quarter, bringing its broadband subscriber base to approximately 310,000, a 24 percent increase sequentially. DISH added approximately 11,000 net broadband subscribers in the second quarter of 2012.