Dish Network posted a surprise loss for the third quarter as pay-TV subscriptions fell more than expected in the face of stiff competition from streaming services, sending its shares down nearly 15% on Monday.
The company also said CEO Erik Carlson had resigned as part of a planned merger with satellite operator EchoStar, a deal that would reunite billionaire Charlie Ergen’s telecommunications empire and create a nearly $6 billion company.
Dish is trying to expand its presence in the wireless market as its traditional TV business takes a hit from customers cutting ties in favor of streamers including Netflix and Disney+.
Its pay-TV subscribers, including Dish TV and Sling TV subscribers, fell by 64,000 in the three months to September, bigger than Visible Alpha’s estimate for a drop of 39,620.
Dish added 30,000 subscribers a year ago for the September quarter, a traditionally strong period for the Sling TV streaming service thanks to college football and the NFL.
Dish is trying to expand its presence in the wireless market as its traditional TV business takes a hit from customers cutting ties in favor of streamers including Netflix and Disney+.REUTERS
But the company said in September that US-based Hearst Television had removed subscriber access to 37 local channels in 27 markets after a dispute over distribution rates despite months of talks.
Dish posted a loss of $139 million, or 26 cents for the third quarter, while analysts had expected a profit of 5 cents, LSEG data showed. Revenue fell nearly 10% to $3.70 billion, missing estimates of $3.72 billion.
Dish lost 225,000 retail wireless net customers in the quarter, compared to an increase of 1,000 a year earlier.
Dish’s merger with Echostar reunites Charlie Ergen’s telecommunications empire and creates a nearly $6 billion company.REUTERS
In July, the company said its Boost Infinite unit had partnered with Amazon to sell postpaid wireless plans through its e-commerce platform in the US.
Dish also has an option to buy 800 megahertz of T-Mobile’s spectrum license, but has yet to make a move.
Bloomberg News reported last month that the companies told the court they had agreed to give Dish until April 1 to buy airwaves after the satellite network missed an August deadline.
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Source: thtrangdai.edu.vn/en/
