FILE PHOTO: The DISH logo is shown during the annual Consumer Electronics Show (CES) in Las Vegas, Nevada January 6, 2014. REUTERS/Robert Galbraith
(Reuters) – Dish Network Corp on Wednesday missed Wall Street estimates for quarterly profit as the U.S. satellite TV service provider lost more-than-expected pay-TV subscribers, sending its shares down 6 percent.
The company said its pay-TV business, which includes both satellite TV and streaming service Sling TV, lost a net 334,000 subscribers in the fourth quarter. Analysts were expecting Dish to lose just 264,000, according to research firm FactSet.
The company’s satellite TV business has been struggling from “cord-cutting,” as consumers cancel their cable and satellite television subscriptions and increasingly shift to online video streaming.
Analysts have said Dish’s market share is likely to see more pressure as companies like Walt Disney Co, and AT&T Inc prepare to launch streaming services later this year.
The company currently has 12.32 million Pay-TV subscribers, including 9.90 million DISH TV users and 2.42 million Sling TV subscribers.
Net income attributable to Dish Network fell to $337 million, or 64 cents per share, in the quarter ended Dec. 31 from $1.39 billion, or $2.64 per share, a year earlier when it recorded an about $1.2 billion tax gain.
Excluding items, Dish earned 64 cents per share, but missed the average analyst estimate of 67 cents.
Revenue fell to $3.31 billion from $3.48 billion, but beat the analysts’ expectation of $3.28 billion, according to IBES data from Refinitiv.
Reporting by Sayanti Chakraborty in Bengaluru and Sheila Dang in New York; Editing by Bernard Orr and Arun Koyyur