Dish Network Q2 profit falls on climbing costs
Dish Network Corp said Monday that its second-quarter profit slid 81 percent on TiVo Inc litigation costs and rising expenses, but the nation's second-largest satellite TV provider managed to add subscribers and maintain revenue.
The Englewood, Colo.-based company earned $63.4 million, or 14 cents per share, for the period ended June 30. That's down from $335.9 million, or 73 cents per share, last year.
Analysts polled by Thomson Reuters, whose estimates typically exclude one-time items, forecast profit of 67 cents per share.
Revenue was nearly flat at $2.90 billion, with prior-year revenue coming in at $2.91 billion. Analysts expected revenue would not stray far from year-ago results, predicting $2.91 billion for the current quarter.
Total costs and expenses rose to $2.64 billion, which included a TiVo litigation expense of $196.4 million. In a worst-case scenario, Dish's court battle with TiVo could force Dish to yank its digital video recorders over patent claims.
Subscriber acquisition costs increased to $388.3 million from $371.4 million, while general and administrative expenses grew to $143.5 million from $122.3 million.
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