Dish Network said Friday it lost 96,000 net TV subscribers in the second quarter, down from a loss of 31,000 the year before and a record 413,000 in the first quarter of 2020.
The figure for the last quarter included the loss of 40,000 net subscribers to the traditional pay-TV service Dish, down from 79,000 a year ago, and the loss of around 56,000 net subscribers to the Sling TV streaming service, a change from the previous quarter. ‘last year. there is a gain of 48,000 clients.
The company ended the first quarter with 11.27 million total subscribers, including 9.02 million Dish TV subscribers and 2.25 million Sling TV subscribers.
“The COVID-19 pandemic has caused significant disruption in some business segments served by Dish, including the hospitality and airline industries,” said Dish, led by President Charlie Ergen and CEO Erik Carlson. “As a result, Dish has suspended service or granted temporary rate reductions for approximately 250,000 commercial accounts and removed those accounts from its pay TV subscriber count as of March 31, 2020. In the second quarter, 45 000 of these subscribers have resumed normal service. ”
The firm not having incurred “significant” expenses related to the return of these commercial subscribers, they were added to the count of June 30 subscribers “without being registered as new subscribers” during the quarter, he said. . The net effect was an increase in the number of subscribers of 5,000 from the figure reported at the end of the first quarter.
But Dish also noted the “positive impact of COVID-19,” including home orders which have resulted in “increased consumption of our pay-TV services. The pandemic is also having a »positive impact on competitive pressures due, among other things, to a reduction in customers’ willingness to welcome competitor technicians to their homes and delays and cancellations of sporting events which have reduced attractiveness. promotional offers and services from competitors. ”
Dish’s second-quarter profit fell to $ 452 million in the second quarter from $ 317 million in the same period of 2019, despite a slight drop in revenue from $ 3.21 billion to $ 3.19 billion . A 5.8% drop in subscriber spending to $ 1.89 billion contributed to bottom line, driven by lower average subscriber base and “lower variable and retention costs per subscriber.” .
In a regulatory filing, Dish said the latter included previously announced job cuts due to the pandemic, but did not provide details. “Due to the current economic climate, combined with the changing needs of our customers and the best way to serve them, during the second quarter of 2020, we made the decision to re-evaluate our organization,” the file said. “This included a targeted package of downsizing to align our workforce to better serve our pay TV customers. “