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How Did Dish Network Perform in Q2 2018?

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Dish’s better-than-expected results

On August 3, Dish Network (DISH) stock soared 14.5% and closed at $34.20 after the company reported better-than-expected earnings and revenues for the second quarter of 2018. The US satellite TV provider also lost fewer satellite TV subscribers than expected, which gave the stock a boost. The company is also on track to build the first phase of its 5G (fifth-generation) wireless network.

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Dish’s Q2 results in detail

In the second quarter, Dish Network posted revenues of $3.46 billion, which was above Wall Street’s expectations of $3.44 billion. However, its revenues fell 5% YoY (year-over-year) and remained flat sequentially.

It delivered earnings of $0.83 per share in the second quarter, which was better than analysts’ expectation of $0.71 and significantly higher than $0.09 in Q2 2017. The better-than-expected results came after Dish posted lower losses in satellite customers than analysts expected. It lost 192,000 satellite customers compared to expectations of a loss of 235,000.

Dish Network’s net pay-TV subscribers declined by 151,000 in the second quarter since, like other pay-TV companies, it has been struggling to stop losses from cord-cutting as viewers move to cheaper online streaming services. Dish’s pay-TV subscribers could decline even more due to the blackout of Spanish-language TV network Univision over a fee dispute.

Dish’s online streaming service Sling TV added 41,000 subscribers during the quarter, which is lower than analysts’ estimate of 68,000. Its churn rate improved to 1.46% from 1.83% in the year-ago quarter. 

Stock returns

Dish stock has fallen 31.9% YTD (year-to-date) as of August 3. Pay-TV companies Comcast (CMCSA) and Charter Communications (CHTR) have fallen 12.8% and 13%, respectively, YTD. AT&T (T) has fallen 12.6%, and Verizon (VZ) has risen 1.2% in the same period.

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