DISH 2Q Report Reveals Frustrating Losses in Hospitality, Airline Markets
DISH Network‘s second quarter 2020 (2Q) financial report produced mixed results — an increase in net profit, offset by subscriber losses, service disruptions in hospitality and airline markets, and a decline in quarterly revenue. DISH’s 2Q revenues dipped slightly year-over-year from $3.21 billion to $3.19 billion, but the Colorado-based satellite ISP was able to increase its net income from $317 million in 2Q 2019 to $452 million. Diluted earnings-per-share also rose from $0.60 to $0.78 per share.
But, the company’s TV business continues to bleed subscribers and the COVID-19 pandemic only complicated how those losses were tabulated. DISH TV reported a net subscribers decreased by approximately 40,000 in the second quarter, compared to a net decrease of 79,000 in the year-ago quarter. It’s Sling TV net subscribers also dropped by approximately 56,000 in the second quarter compared to a net increase of 48,000 in the year-ago quarter.
“The COVID-19 pandemic has caused significant disruption in certain commercial segments served by DISH, including the hospitality and airline industries,” DISH Network said in a company statement. “As a result, DISH paused service or provided temporary rate relief for approximately 250,000 commercial accounts and removed those accounts from its ending Pay-TV subscriber count as of March 31\. During the second quarter, 45,000 of these subscribers resumed normal service. Since DISH did not incur significant expenses related to the return of these commercial subscribers, they were added to the June 30, 2020 DISH TV subscriber count.”
DISH is currently embarking on a mission to launch a standalone 5G network. The company also officially entered the retail wireless market as it completed its $1.4 billion acquisition of Boost Mobile. This acquisition was part of an agreement DISH made with the the Antitrust Division of the U.S. Department of Justice, T-Mobile, and Sprint. DISH agreed that following the completion of the Sprint and T-Mobile merger, it would acquire Sprint’s prepaid businesses and customers, including Boost Mobile.