When it comes to retransmission consent impasses, direct broadcast satellite service provider Dish has been involved in some of the nastiest, prolonged disputes in recent years. Among the companies impacted are Nexstar Media Group and Hearst Television.
Don’t think for a minute that the absence of over-the-air TV channels on Dish’s lineups isn’t a big deal. Pay TV subscriber rolls dipped in Q3, leading to a surprise loss in the quarter. If that wasn’t enough, Dish’s Chief Executive Officer revealed he’s stepping down as part of a planned merger with EchoStar.
Investors revolted, sending Dish shares down to a value some $40 per share less than where they were in August 2021.
With less than 5 minutes remaining in Monday’s trading, DISH, which trades on the Nasdaq GlobalSelect market, was down a stunning 37.4% to $3.4350.
Not only is that the lowest valuations for Dish stock seen since October 1998, but it marks a substantial decline in the company’s share price when even looking on a mid-term and short-term basis. On August 8, shares were priced at $8.37 at the Closing Bell. One year ago, DISH was valued at $17.
With average volume of some 8.18 million shares, Monday’s trading saw some 65.3 million shares traded with some 10 minutes remaining in the day.
For the three-month period ending September 30, revenue came in at $3.7 billion, down from $4.1 billion a year earlier. One key reason for the decline: a net pay-TV subscribers decrease of approximately 64,000 in Q3, compared to a net increase of approximately 30,000 in the year-ago quarter.
This played a significant role in why DISH Network shifted to a net loss of $139 million (-$0.26 per diluted share) in Q3, compared to earnings of $412 million (+$0.65) in the same period of 2022.
Of the 11 analysts who offered an EPS estimate for DISH, the consensus came in at +$0.04; the low estimate was -$0.27, meaning DISH missed the guidance of 10 analysts despite meeting the consensus estimate on revenue in Q3.
As investors dumped DISH shares in droves, the company said in a SEC filing that W. Erik Carlson on Friday (11/3) notified Dish that he intends to resign as President/CEO of the company, effective November 12.
Dish made it clear that this is the direct result of the previously announced merger between Dish and EchoStar Corporation. “Mr. Carlson is not resigning due to any disagreement with the board of directors or management of Dish,” the company said in the filing.
Carlson will remain on the board of directors of Dish through the closing of the merger.
Meanwhile, Dish said in the filing that it “intends to work with EchoStar to appoint EchoStar President/CEO Hamid Akhavan to the additional post of Dish President/CEO, effective Nov. 13.
Akhavan’s appointment will be subject to the approvals of the Dish board of directors and the EchoStar board of directors.
