Dish revenue rises as it adds more subscribers

Dish Network Corp, the second-largest US satellite TV company, reported a better-than-expected six per cent growth in quarterly revenue due to higher net subscriber additions.

The company added a net 40,000 subscribers in the quarter ended March 31. Wall Street analysts had expected the company to add a net 21,900 subscribers in the quarter ended March 31, according to market research firm StreetAccount.

Subscriber additions improved as churn rate fell to 1.42 per cent in the quarter from 1.47 per cent a year earlier. The company ended the quarter with 14.1 million pay-TV subscribers.

The company, however, reported a lower-than-expected quarterly profit as it spend more on programming and transmission.

Net income attributable to the company fell to $175.9 million, or 38 per cent share, from $215.6 million, or 47 per cent share, a year earlier.

Analysts had expected a profit of 44 per cent share, according to Thomson Reuters. Total costs and expenses rose about 8 per cent.

The company expects subscriber-related expenses to increase especially for acquiring content from local broadcast channels and on sports programming. It added that margins may face pressure if it is unable to renew long-term programming contracts on favorable pricing terms.

Revenue rose to $3.59 billion from $3.38 billion a year earlier. Average revenue per user rose 5 per cent to $82.36.

Analysts had expected revenue of $3.58 billion.

Shares of the company closed at $62.66 on Wednesday on the Nasdaq. The stock has gained 8 per cent this year.