Shares of Dish Network Corp. dropped Monday, after the satellite TV and wireless services company swung to surprise a third-quarter loss, as pay-TV and wireless subscribers declined.
The company disclosed that Chief Executive Erik Carlson plans to resign, as expected, effective Nov. 12, after 28 years with the company.
The stock
DISH,
-37.43%
slumped 5.3% in premarket trading. The selloff comes after the stock soared 17.3% last week, the best weekly performance since it powered up 27.3% during the week ended Nov. 11, 2022.
The company reported a net loss of $139 million, or 26 cents a share, after net income of $412 million, or 65 cents a share, in the same period a year ago.
The FactSet consensus was for earnings per share of 11 cents.
Revenue fell 9.5% to $3.70 billion, below the FactSet consensus of $3.82 billion.
Net pay-TV subscribers decreased by 64,000, after increasing 30,000 a year ago, while retail wireless subscribers were down 225,000, after rising by 1,000 last year.
Meanwhile, average revenue per pay-TV user increased 3.1% to $105.25, while Dish TV churn was 1.58% vs. 1.53% last year.
The company also said in an 8-K filing with the Securities and Exchange Commission that CEO Carlson will remain on the board of directors until the Dish’s merger with EchoStar Corp.
SATS,
-31.28%
is completed, which is expected to occur by the end of the year.
The company said it plans to appoint EchoStar Chief Executive Hamid Akhavan as CEO of Dish, effective Nov. 13. When the merger was announced on Aug. 8, Dish said Akhavan would serve as CEO of the combined company when the deal closed.
Dish’s stock has tumbled 27.7% over the past three months through Friday, while the S&P 500 index
SPX
has slipped 2.7%.
Read the full article here