Tag Archives: dish

Dish Q1 Profit Beats, Viacom Dispute May Fuel Subscriber Losses

Dish Network ’s ( DISH ) Q1 profit topped views, sending the satellite TV broadcaster’s stock up, as shares in Viacom ( VIA ) fell again amid stalled negotiations with Dish over a programming contract renewal. Englewood, Colo.-based Dish, which normally reports Q1 earnings in May, said that profit rose 11% from the year-earlier period to 84 cents a share. Revenue rose 2% to $3.79 billion, Dish said. Analysts had modeled EPS of 62 cents and revenue of $3.8 billion. Dish stock was up nearly 2% in afternoon trading in the stock market today , near 48. The satellite TV broadcaster’s stock is down 15% in 2016. Dish has been unable to find a buyer for its wireless radio spectrum or a wireless partner to offer mobile video services. Viacom stock, which fell 7% on Tuesday, was down about 2% late Wednesday morning, near 38. Dish said that it lost 23,000 net pay-TV customers in Q1. The company combines satellite TV customers with subscribers to its new online video service branded “Sling,” but it does not break out results. Dish lost 158,0000 satellite TV customers in Q1 but gained 135,000 Sling customers, estimated Craig Moffett, an analyst at MoffettNathanson. While Dish aims to stabilize rising programming costs, its dispute with Viacom could increase subscriber losses, says Moffett. John Hodulik, a UBS analyst, agreed in a report. “DirecTV faced a similar dispute in July 2012, which kept Viacom networks off the air for 10 days, contributing to an 80% year-over-year drop in net adds in Q3 2012. While this is likely a negotiating tactic by Dish, since 2014 smaller cable operators, including Cable One and Suddenlink, have dropped Viacom’s networks entirely to save cost,” wrote Hodulik. Vijay Jayant, an analyst at Evercore ISI, said in a report: “We estimate that DISH pays Viacom between $350M and $400M in programming costs. While Dish will save these costs in case there is no agreement, it will also lose subscribers at a higher pace initially than in a scenario where there is a deal.  Dish also has an ongoing dispute with ( Comcast ( CMCSA )-owned) NBCU.” Viacom’s 24 cable networks include MTV, Nickelodeon and Comedy Central. Viacom lacks sports content, a strength of Walt Disney ( DIS ) and 21st Century Fox ( FOXA ). Dish has had disputes with CBS ( CBS ), 21st Century Fox and Time Warner’s Turner Broadcasting unit. Viacom rose more than 1% near 36 Wednesday afternoon after tumbling 8.3% on Tuesday.

Ligado Spectrum Push Good For Verizon, AT&T, But Bad For Dish?

Federal regulators appear to be warming up to a radio spectrum proposal from Ligado Networks, formerly LightSquared, which could provide AT&T ( T ), Verizon Communications ( VZ ) or T-Mobile US ( TMUS ) with a new strategic option — but could spell trouble for Dish Network ( DISH ) and its spectrum holdings. The Federal Communications Commission recently began its Broadcast Incentive Auction involving airwaves owned by local TV stations. The top bidders are expected to be AT&T, Verizon and T-Mobile. The complex auction is expected to drag on for months. Ligado’s re-emergence from Chapter 11 has been a wild card . Verizon, AT&T or T-Mobile might be less likely to buy Dish’s spectrum or partner with the satellite TV broadcaster if Ligado’s spectrum becomes commercially available. Dish has struggled to find a wireless partner to pursue mobile video services. Former Verizon CEO Ivan Seidenberg is chairman of Ligado, while former FCC Chairman Reed Hundt is a board member. Ligado, controlled by private equity firms, has a sizable 35 megahertz of midband spectrum. “Recent filings suggest the FCC may soon open inquiry on Ligado’s new spectrum proposal,” said Paul Gallant, an analyst at Guggenheim Partners, in a research report. “We believe Ligado’s restructured spectrum plan stands a reasonable chance of winning FCC approval. “If Ligado’s path to market becomes clear, it (would be) a long-term positive for Verizon, AT&T and T-Mobile, and a potential concern for Dish’s spectrum valuation (if Dish has not already monetized its spectrum).” After emerging from bankruptcy, Ligado has reached agreements with tractor maker Deere ( DE ) and GPS device maker Garmin ( GRMN ), resolving issues over potential global positioning system interference.

Comcast Could Gain From Moderating Programming Costs, Says Nomura

Comcast ’s ( CMCSA ) programming costs should moderate after 2017, boosting the cable TV side of its business, while its NBCUniversal division gets a lift from its own contract renewals, says a bullish Nomura report. Nomura analyst Anthony DiClemente expects Comcast to report a strong first quarter. Comcast is slated to post Q1 earnings on April 27. Some analysts have been raising estimates  for Comcast’s Q1 video subscriber additions. “Comcast is likely to meet or beat Q1 expectations,” said DiClemente in the report. “We expect 2016 to be a strong year of execution for Comcast, driven by video and broadband subscriber upside, as well as NBCU tailwinds from retransmission and affiliate fee growth, constructive parks trends and the Rio Olympics.” Comcast stock has gained more than 10% in 2016, and was down a fraction, near 62, in early trading in the stock market today . “After 2017, we believe Comcast likely has the majority of its major programming rights locked in until around 2020, suggesting substantial earnings potential and operating leverage in the out years,” said DiClemente. “Comcast (also) stands to benefit from the other side of the rights negotiation table through its ownership of NBCUniversal.” He says NBCU has upcoming renewals with Dish Network ( DISH ) and Verizon Communications ( VZ ). Comcast is the nation’s No. 1 cable TV provider. Charter Communications ( CHTR ) will be No. 2 if federal regulators approve its acquisitions of Time Warner Cable ( TWC ) and Bright House Networks. The Federal Communications Commission is expected to approve the Charter-Time Warner Cable deal with conditions, but California regulators may not green-light the merger until May.