EchoStar Posts $2.03 Billion Loss as Dish Network Loses 314,000 Pay TV Subs

Jon Lafayette
·2 min read
Dish Network.
Dish Network.

Pay TV subscriber losses accelerated at EchoStar, which now includes Dish Network, contributing to a huge fourth-quarter loss.

Net pay TV subscribers fell by 314,000 to 8.53 million. The company lost 64,000 subs in the third quarter and 268,000 in the year-ago quarter.

Dish Network satellite subscribers fell to 6.47 million from 6.82 million in the third quarter.

Subscribers to virtual multichannel video programming distributor Sling TV dropped to 2.06 million from 2.12 million last quarter.

Pay TV revenue fell 12% to $2.8 million from $3.2 million a year ago.

The company blamed the net decrease in revenue on subscriber declines, most significantly in the pay TV segment.

Overall, EchoStar had a loss of  $2.03 billion, or $7.48 a share, in the fourth quarter. A year ago, EchoStar had net income of $984 million, or $3.21 a share.

The company said the loss was primarily attributable to a non-cash goodwill-impairment charge of $758 million, and an adjustment to the carrying value of the 800-MHz purchase option totaling approximately $1.6 billion.

Revenue fell 8% to $4.16 billion.

In the quarter, retail wireless revenues fell to $899.3 million from $928.1 million as the company lost 123,000 subscribers.

Broadband and satellite service revenue dropped to $449.8 million from $499.9 million. Broadband subscribers were down 59,000.

“We closed the year with the completion of the merger with Dish Network,” CEO Hamid Akhavan said. “The transaction combined Dish Network's satellite technology, streaming services, engineering expertise, retail wireless business and nationwide 5G network with EchoStar's premier satellite communications solutions, enterprise go-to-market capabilities and U.S.-based manufacturing.

“Collectively, it creates a global leader in terrestrial and non-terrestrial wireless connectivity and entertainment services,” he said. "With the close of the merger, we will continue to integrate our business and realize savings and operational efficiencies. We also will increase our focus on identifying and targeting the best, most profitable customers in each of our addressable market segments — Pay TV, Retail Wireless and Broadband and Satellite Services."