Satellite TV provider DISH fell short of EPS and revenue expectations for Q1 2023 amid its sustained stock devaluation troubles.
DISH Network Corporation (NASDAQ: DISH) has published Q1 2023 numbers that missed earnings per share (EPS) and revenue estimates. The satellite television and telecommunications company’s reported EPS for the first quarter was $0.35 compared to the consensus estimate of $0.36. Also, DISH’s revenue came in at $3.96 billion versus the $4.06 billion analysts expected for the same period. The company’s latest revenue haul is lower than the $4.33 billion it generated in the corresponding period last year.
For Q1 2023, DISH Network reported a net income of $223 million versus the $433 million realized in Q1 2022. Meanwhile, the Colorado-based television provider’s diluted earnings per share of $0.35 paled compared to its Q1 2022 figure of $0.68.
For the period ended March 31st, DISH’s net pay-TV subscribership sank by roughly 552,000. This marked a decrease of almost 100,000 subscribers from the 462,000 subscribers decline recorded in the first quarter of last year. However, the company ended Q1 2023 with 9.20 million pay-TV subscribers, which comprised 7.10 million DISH TV subscribers and 2.10 million SLING TV subscribers.
In this year’s first quarter, there was also a decrease in retail wireless subscribers by approximately 81,000. However, this drawdown outperformed the much sizable 343,000 retail wireless net subscription decrease sustained in Q1 2022. DISH reported closing the first three months of 2023 with a retail wireless subscriber base of 7.91 million.
Following its latest quarterly results, DISH is scheduled to hold its conference call today at 10 a.m. ET.
Other Developments Outside of DISH Q1 2023 News
Wall Street downgraded DISH’s stock in late March following its massive 71% drawdown over the past 12 months. At the time, UBS financial analysts reacted to DISH’s plunging value, giving it a “Neutral” rating from its previous “Buy”. Meanwhile, financial analysts at BofA Global Research had written to DISH investors in late February, also intimating a stock downgrade. The note read:
“In light of recent events, performance, and market realities, we are downgrading our rating to ‘Underperform’.”
At the time, the reasons cited for a DISH downgrade included the company’s ongoing recovery from a debilitating cybersecurity incident. The incident occurred in February, around the time that DISH announced its Q4 2022 results. The company’s corporate computer systems remained entirely offline, with President and Chief Executive Officer W. Erik Carlson addressing the incident in an earnings call. At the time, Carlson explained:
“We experienced an internal outage that’s continuing to affect our internal servers and IT telephony. Our DISH and Sling services and our wireless and data networks continue to operate normally, [and] are up and running. However, some of our internal communications, customer care functions, and Internet sites were affected and are currently down.”
The CEO added that DISH was “analyzing the root causes and any consequences of the outage”. Lastly, Carlson pointed out that the satellite company worked to restore the affected systems as swiftly as possible.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
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