Dish Network
stock plunged on Monday after the group posted a surprise third-quarter loss. The satellite-television provider also dropped deal news.
Dish (ticker: DISH) reported a loss of 26 cents a share on revenue of $3.7 billion in the third quarter, a disappointing result, with analysts surveyed by FactSet expecting a profit of 11 cents a share on revenue of more than $3.8 billion.
Dish stock is down 20% in early Monday trading
Dish also announced Monday that it was selling spectrum assets and some 120,000 prepaid mobile subscribers in Puerto Rico and the U.S. Virgin Islands to
Liberty Latin America
(LILA).
“This transaction will enhance competition within the wireless market in Puerto Rico and the USVI, while providing Dish with additional capital to focus on our wireless business in the United States,” Dish said in a press release.
The deal, worth some $256 million, consists of cash and international roaming credits, and is expected to close next year. Shares of Liberty Latin America are up more than 3%.
Dish also said that its president and CEO, W. Erik Carlson, intends to resign effective Nov. 12. When the company agreed to merge with
EchoStar
(SATS)—a deal announced in August to create a rival to
AT&T
(T) and
Verizon Communications
(VZ)—Carlson was set to leave at the close, which had been set for “by year-end.”
Hamid Akhavan, current president and CEO of EchoStar, will serve as president and CEO of the combined company upon closing of the transaction, and Charles Ergen—current chairman of both Dish and EchoStar—will serve as executive chairman.
Write to Jack Denton at jack.denton@barrons.com
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