Dish Q3 Earnings Up - Twice

Dish Q3 Earnings Up

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Englewood, Colo. -

Dish Network

reported Monday an increase in third-quarter sales from the same period a year ago but another decline in subscriber totals.

The satellite TV provider said sales increased 2 percent to $3.6 billion, but the service lost 111,000 subscribers in the period.

The subscriber declines came a few days after rival satellite TV service DirecTV reported a 327,000 subscriber increase. At the end of the period, on Sept. 30, the satellite TV service listed approximately 13.945 million total U.S. subscribers.

Dish's net income for the period increased 30 percent to $319 million, from $245 million a year earlier.

"Dish delivered another quarter of strong growth in net income compared to the same period last year," stated Joe Clayton, Dish Network president and CEO. "Our net subscriber loss improved over the second quarter of this year but continued to be affected by increased competitive pressures, including aggressive competitive promotional offers, discounting and a weak housing market. Going forward, we plan to build on the momentum of our introduction of the Blockbuster-branded programming service which allows Dish customers to stream movies and TV shows as well as receive DVDs by mail."

Company chairman Charlie Ergen, who also heads sister company EchoStar, purchased Blockbuster, DBSD North America and TerreStar Networks this year, with plans to expand into new services including Internet video for mobile devices.

Moving closer to completing those acquisitions, Dish said Friday it will pay Sprint Nextel $114 million to settle a dispute over its separate purchases last summer of DBSD North America and TerreStar out of bankruptcy.

The acquisitions still need Federal Communications Commission approvals.

Sprint claimed it was owned $104 million in bandwidth fees from TerreStar and DBSD. Dish said the new settlement ends the litigation and Sprint withdrew its petitions to deny Dish the right to use the new spectrum it was seeking to acquire.

TerreStar has been working on developing the first satellite-based smartphone.

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