DISH TV down ~380k; Sling TV up ~50k subs in 4Q 2018

Wednesday, February 13th, 2019
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DISH Network Reports Fourth Quarter, Year-End 2018 Financial Results

ENGLEWOOD, Colo. — DISH Network Corporation (NASDAQ: DISH) reported revenue totaling $3.31 billion for the quarter ending December 31, 2018, compared to $3.48 billion for the corresponding period in 2017.

Net income attributable to DISH Network totaled $337 million for the fourth quarter 2018, compared to $1.39 billion from the year-ago quarter. DISH’s net income for the fourth quarter of 2018 was positively impacted by non-cash adjustments related to the adoption of the ASC 606 revenue recognition standard, net of related taxes, of $25 million. Fourth quarter 2017 net income was positively impacted by an income tax benefit of approximately $1.2 billion due to an adjustment to deferred tax assets and liabilities related to tax reform legislation, and negatively impacted by an impairment of long-lived assets expense of $112 million, net of related taxes.

Diluted earnings per share were $0.64 for the fourth quarter, compared to $2.64 per share during the same period of 2017.

The company closed the fourth quarter with 12.32 million Pay-TV subscribers, including 9.90 million DISH TV subscribers and 2.42 million Sling TV subscribers.

Net Pay-TV subscribers decreased by approximately 334,000 in the fourth quarter, compared to net additions of 39,000 in the year-ago quarter.

Subscribers (in millions)

For the Years Ended December 31,
2018 2017 2016 2015 2014
Subscribers
Pay-TV 12.32 13.24 13.67 13.90 13.98
DISH TV 9.91 11.03 12.17 13.27 13.88
Sling TV 2.42 2.21 1.50 0.62 0.10
Net subscriber additions (losses)
Pay-TV (0.92) (0.28) (0.39) (0.08) (0.08)
DISH TV (1.13) (1.00) (1.27) (0.61) (0.12)
Sling TV 0.21 0.71 0.88 0.53 0.04

Full-Year 2018 Review

For the year, DISH reported 2018 total revenue of $13.62 billion, compared to $14.39 billion in 2017. Subscriber-related revenue in 2018 was $13.46 billion, compared to $14.26 billion in 2017.

Net income attributable to DISH Network in 2018 was $1.58 billion, compared to $2.10 billion in 2017. DISH’s net income for 2018 was positively impacted by non-cash adjustments related to the adoption of the ASC 606 revenue recognition standard, net of related taxes, of $116 million. Net income for 2017 was positively impacted by an income tax benefit of approximately $1.2 billion related to tax reform legislation and was negatively impacted by an impairment of long-lived assets expense of $112 million and litigation expenses of $287 million, each net of related taxes.

Diluted earnings per share were $3.00 in 2018, compared to $4.07 in 2017.

Pay-TV ARPU was $85.46 during 2018 versus $86.43 in 2017. DISH TV’s average monthly subscriber churn for 2018 was 1.78 percent, unchanged from 2017.

Detailed financial data and other information are available in DISH Network’s Form 10-K for the year ended Dec. 31, 2018, filed today with the Securities and Exchange Commission.