Dish and Sling TV Combined for Loss of 380,000 Subscribers in First Quarter

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In the initial quarter of 2025, Dish TV and Sling TV collectively reported a decrease of about 380,000 subscribers, dropping from approximately 7.78 million to around 7.4 million, as announced by their common parent company Echostar in their earnings report on Friday morning.

The revenue generated by the pay TV segment dropped by 7.4% from $2.7 billion in the corresponding quarter of 2024 to $2.5 billion, as reported by Echostar, which states this decrease was “in accordance with expectations.” The segment’s operating income fell slightly from $670 million to $653 million (a decrease of 2.5%); when factoring out depreciation and amortization costs, the decline was from $756 million to $730 million (a decrease of 3.4%).

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The pay TV segment’s revenue decreased by 7.4% from $2.7 billion in the same quarter of 2024, reaching $2.5 billion, as Echostar had expected. The operating income for this segment dropped slightly from $670 million to $653 million (a decrease of 2.5%), while accounting for depreciation and amortization, the decline was from $756 million to $730 million (a decrease of 3.4%).

The company reported a 3% rise in Average Revenue per User (ARPU), with Dish TV experiencing its lowest user attrition (1.36%) in more than a decade, despite this timeframe not taking into account the COVID-19 pandemic. Compared to Q1 2024, Dish TV’s user churn decreased by 11%.

In summary, EchoStar experienced a loss of approximately $200 million for the quarter, which translates to 71 cents per share. This loss was primarily due to ongoing financial struggles in its wireless business (primarily Boost Mobile). Analysts on Wall Street predicted a loss of 90 cents per share, but EchoStar managed to outperform this expectation. Additionally, EchoStar’s revenue surpassed the media analysts’ forecast of $3.86 billion by recording $3.87 billion.

Hamid Akhavan, the president and CEO of Echostar, said he’ll take it, basically.

Akhavan stated, along with the company’s financial report, that “The EchoStar team outperformed our expectations during the first quarter.” He expressed satisfaction with the advancements of our Wireless division and the year-on-year increase in net subscriber growth. Furthermore, he noted that our Pay-TV sector is still enhancing Average Revenue Per User (ARPU) and reducing churn rates, and our inflight connectivity business is growing, expanding, and attracting attention from airlines across the globe.

2023 saw Echostar take over Dish Network, a move that would have resulted in DirecTV acquiring Dish last year, forming the biggest U.S. pay-TV provider. However, this deal fell through when Dish’s lenders declined a debt-exchange offer. As a satellite TV enthusiast, I was on the edge of my seat watching this unfold!

Initially, we thought that joining DirecTV with Dish would be beneficial for everyone involved. However, we’ve decided to call off the deal as the proposed terms weren’t suitable to safeguard DirecTV’s financial stability and operational freedom, according to CEO Bill Morrow. Instead, DirecTV will focus on its goal of collecting, organizing, and delivering content that appeals to customers by developing innovative products and offering more choices, flexibility, and control. We are optimistic about the future as we have a robust financial structure and the backing of our long-term partner TPG.

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2025-05-09 17:24