Dish Network Corp (NASDAQ:DISH) released its quarterly results on Wednesday which continued to highlight the challenges related to cord cutting. Dish’s stock has plummeted more than 31% in the past year and unfortunately for shareholders, we could see even more off a sell-off ensue after the most recent results.
In total, the company lost 121,000 subscribers from its satellite TV service. However, you wouldn’t know it from the financials as the company was able to bank a profit of $1.39 billion, which was a big increase from the $355 million profit that Dish recorded a year ago as the company benefited from a $1.2 billion tax benefit.
Revenue of $3.48 billion fell short of the expected $3.53 billion that was expected by analysts as sales were down more than 7% from last year.
But it wasn’t all bad news for Dish as the company did see growth in its online service SlingTV, which saw an increase in subscribers of nearly 50%. The service was launched back in 2015 as a way for cord cutters to access live TV for a low monthly cost and without the need to purchase or rent any equipment that’s normally required for a conventional cable or satellite subscription.
This industry is clearly undergoing a change, and how Dish is able to adapt and better serve its customers will be key. We’ve been seeing cord cutting have a big impact on the marketplace already as many content providers have started to offer online options for consumers rather than relying simply on cable or satellite subscriptions.
