Dish Network profit falls 81%
Q2 hit by TiVo litigation costs, higher spendingNEW YORK -- After five quarters, Dish Network finally stopped bleeding customers, news that sent its stock and that of sister company EchoStar soaring on Monday.
Dish said it added 26,000 subscribers in the second quarter for a total 13.6 million. Not as good as the 224,000 subs its rival DirecTV added in the quarter for a total of more than 24 million, but it's a victory for Dish because it's a positive number for a change, and Wall Street took notice.
Shares of Dish advanced 5% Monday to $19.30 while EchoStar, which provides much of the technology Dish relies on, saw its shares move 8% higher to $15.97.
Dish reported revenue of $2.9 billion, unchanged from a year ago, but net income of just $63 million, down 81% from the $336 million it earned in the year-ago quarter.
Part of the blame for falling profit goes to increased costs, up 15% to $2.64 billion, in part due to a $196 million charge related to its patent lawsuit with TiVo which, after six years, still isn't completely settled.
EchoStar also reported quarterly results Monday. The company earned $101.8 million, up 113% from a year ago, on revenue that fell 21% to $383.1 million. The results this time included a $110.1 million gain from an investment.