DISH Network Corp Beats Earnings Estimates Despite Soft Sales, Announces Satellite Broadband Deal

Dish Network beat Wall Street's earnings targets in the fourth quarter, in spite of stagnant subscriber growth and weak revenues.

Feb 21, 2014 at 10:13AM

Image source: Dish Network.

Shares of DISH Network (NASDAQ:DISH) opened 3.2% higher on Friday, following the early morning release of fourth-quarter results and filing of a 10K report for 2013.

The satellite broadcaster saw sales falling 14% year over year to land at $3.1 billion. Earnings jumped 37% higher, stopping at $0.63 per share. Analysts were expecting earnings around $0.41 per share on $3.6 billion in sales.

After closing the last Blockbuster video stores and shuttering Blockbuster's DVD-by-mail service in the fourth quarter, Dish has recast Blockbuster as a discontinued operation in these financial reports.

Dish ended 2013 with 14.057 million pay-TV subscribers. That's 8,000 net new subscribers in the fourth quarter and a gain of 1,000 subscribers in 2013. These figures are the net of 2.7 million gross new accounts and a 1.58% monthly subscriber churn.

Just before filing these reports, Dish signed a deal with corporate sibling EchoStar Communications (NASDAQ:SATS) where Dish gives EchoStar five of its satellites and $11 million in cash, leasing back some of the satellites' capacity. In return, Dish received enough tracking stock to give it 80% ownership of EchoStar's residential satellite broadband operations -- a fast-growing business that's still in its infancy.


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