Voom settlement drains Dish Network profits in Q3 2012
Dish Network (Nasdaq: DISH) blamed the $158 million net loss it reported for the third quarter Tuesday on the deal it signed with Cablevision (NYSE: CVC) and AMC Networks last month, noting that the settlement of the Voom breach-of-contract suit reduced its net income by $453 million.
The satellite TV provider said it lost 19,000 subscribers during the third quarter, which was an improvement compared to the 111,000 customers it dropped during the same period last year. Dish increased average revenue per unit to $77.57 from $77.99 last year, and reduced its churn rate to 1.80 percent. It ended the quarter with 14.042 million subscribers.
Dish agreed to pay Cablevision and AMC $700 million to settle the Voom dispute, and it signed a carriage deal for AMC, IFC, WE and Sundance Channel. Cablevision also agreed to sell 45 MVDDS (multichannel video data distribution service) spectrum licenses to Dish as part of the settlement.
Dish said Tuesday that it would have reported net income of $295 million, or an 8 percent decline, if it weren't for the Voom settlement. Dish reported a net loss per share of 35 cents, compared to net income of 71 cents per share this time last year. It posted $3.52 billion in revenue, down from $3.6 billion in the third quarter of 2011.
- see the earnings release
Special Report: Cable in the third quarter of 2012