EchoStar loses 314,000 net pay-TV subscribers in first post-merger earnings report

Charlie Ergen’s EchoStar lost about 314,000 net pay-TV subscribers in the fourth quarter, compared with a loss of 268,000 in the same period a year earlier and a drop of 64,000 in the third quarter of 2023.

The company revealed late Thursday that it lost about 60,000 Sling TV subscribers in the latest quarter, ending 2023 with 2.06 million total Sling TV subscribers. “We lost approximately 279,000 net Sling TV subscribers during the year ended December 31, 2023, compared to a loss of approximately 152,000 net Sling TV subscribers during the same period in 2022,” the company said in a regulatory filing. “The increase in Sling TV subscriber net losses was primarily related to lower Sling TV subscriber activations, partially offset by lower Sling TV subscriber churn in 2023.”

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The company also saw a net loss of about 250,000 customers in its traditional Dish satellite TV business in the fourth quarter, ending 2023 with 6.47 million total. “We lost approximately 945,000 net Dish TV subscribers during the year ended December 31, 2023, compared to a loss of approximately 805,000 net Dish TV subscribers during the same period in 2022,” the company explained. “This increase in Dish TV net subscriber losses was primarily due to lower Dish TV new subscriber activations and higher Dish TV churn.”

As a result, the total number of EchoStar pay-TV users at the end of the year was 8.53 million, compared to 8.84 million at the end of September 2023.

“EchoStar reported a fourth-quarter loss of $2.03 billion, a change from the prior-year profit of $984 million. The net loss in the fourth quarter of 2023 was primarily due to a non-cash goodwill impairment of approximately $758 million in total and an adjustment to the carrying value of the 800 MHz purchase option of approximately $1.6 billion in total,” EchoStar explained.

In a regulatory filing, the company warned it “expects to use a significant amount of cash” to pay down debt this year, including a $951 million debt payment in March.

The company, led by Ergen Chairman and CEO Hamid Akhavan, was formed through an all-stock merger of Dish Network, a satellite television and streaming provider owned by Ergen, with EchoStar Corp., a broadband internet and communications services provider. The merger was completed earlier this year.

Friday’s earnings report was the first for the combined company since the deal closed. Ergen said the combination would help usher in a “new era of connectivity,” adding: “We have combined two pioneering companies with complementary portfolios to create a global connectivity leader with leading wireless, satellite and video distribution capabilities.”

Akhavan said Thursday: “With the close of the merger, we will continue to integrate our businesses and realize cost savings and operational efficiencies. We will also increase our focus on identifying and targeting the best, most profitable customers in each of our addressable market segments — pay TV, retail wireless, and broadband and satellite.”

Asked about Ergen’s level of involvement in the business — he was absent from Friday’s earnings conference call, which Akhavan said was because he had a birthday and a day off — Akhavan said he had taken over day-to-day operations, which allowed Ergen to see the bigger picture.

“This allows Charlie to focus on more strategic and long-term projects,” he said.

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