Dish To Freeze Prices Through January 2013Sheds 135,000 Customers During Q2 8/09/2011 9:46 AM Eastern
Dish Network said it will freeze prices through January 2013, partly in response to a larger than expected net subscriber loss in the second quarter.
Dish lost 135,000 net subscribers in the quarter, worse than the analysts' consensus estimate of 31,000 net customer losses in the period. In a statement, Dish CEO Joseph Clayton said the losses were due to greater competitive pressures, including higher levels of discounting.
"As we look forward to the second half of the year, we will focus on commercializing our technology, re-energizing our distribution channels and strengthening our brand image," Clayton said in a statement. "We continue to offer the best value to consumers with the lowest everyday prices, in part by freezing prices through January 2013."
Revenue totaled $3.59 billion for the quarter, up 13.3% compared with $3.17 billion for the corresponding period in 2010. Net income attributable to common shareholders totaled $335 million for the quarter ended June 30, 2011, a 30.3% increase compared with $257 million during the same period last year. Diluted earnings per share were 75 cents per share for the second quarter, compared with 57 cents per share during the same period in 2010.
Dish shares were down 6.5% ($1.46 each) in early trading Tuesday to $21.18. The company is scheduled to hold a conference call with analysts to discuss quarterly results at noon today.