DISH Network revenue up 1.6% to $14.27 billion in 2012
Net income in 2012 plummeted to $637 million from $1.52 billion in 2011.
Revenue for the fourth quarter decreased to $3.59 billion from $3.63 billion in the year-ago quarter.
Net income in the fourth quarter declined to $209 million from $313 million in the fourth quarter of 2011.
The decrease in the full-year net income was due to higher subscriber-related expenses driven by programming costs, increased subscriber acquisition costs from higher gross additions, as well as certain one-time items, including the Voom litigation settlement expense
Additionally, the decrease in year-over-year net income was affected by the 2011 reversal of accrued expenses related to the company’s TiVo litigation.
Joseph P. Clayton, president and CEO of DISH, said: “During 2012, DISH added about 89,000 net pay-TV subscribers after having lost approximately 166,000 net pay-TV subscribers in 2011.”
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Bloomberg reported that the satellite operator is considering moving into the wireless industry so that it can bundle mobile service with its TV product. Dish has offered to buy the outstanding shares of Clearwire for $3.30 a share and is waiting for the company’s decision on the bid. Clearwire, the operator of a wireless network, had already agreed to be acquired by Sprint Nextel when Dish made the counteroffer.
For the full year, DISH added about 2.739 million gross new pay-TV subscriber activations compared to 2.576 million gross new pay-TV subscriber activations in 2011.
The company added about 14,000 net new pay-TV subscribers in the fourth quarter of 2012. DISH ended 2012 with 14.056 million pay-TV subscribers compared to 13.967 million total subscribers in 2011.
Pay-TV subscriber churn rate for 2012 decreased to 1.57 percent, an improvement over the 1.63 percent rate in 2011.
DISH also added about 78,000 net broadband subscribers in 2012, compared to a loss of approximately 5,000 subscribers in 2011.