Dish Network Corp. (NASDAQ:DISH) Q3 2017 Earnings Conference Call Transcript

Nov 09, 2017 • 12:00 pm ET


Dish Network Corp. (NASDAQ:DISH) Q3 2017 Earnings Conference Call Transcript


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Good day, and welcome to the DISH Network Corporation Quarter Three 2017 Earnings Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Jason Kiser, Treasurer. Please go ahead, sir.

Jason Kiser

Thank you. Well, thanks for joining us. This is Jason Kiser, joined today by Charlie Ergen, our Chairman and CEO; Tom Cullen, EVP of Corporate Development; Erik Carlson, President of DISH Network; Steve Swain, our CFO; Paul Orban, our Controller; and Tim Messner, our new General Counsel.

So before we open up for Q&A, we're going to do our Safe Harbor disclosures, and we'll (ph) let Tim take that.

Tim Messner

Thanks, Jason, and good morning, everyone, thanks for joining us.

(Forward-Looking Cautionary Statements)

With that said, I'll turn it over to Steve Swain, our CFO.

Steve Swain

A couple of quick comments on our subscribers. During September, Hurricane Maria caused extraordinary damage in Puerto Rico and the US Virgin Islands, which resulted in widespread loss of power and infrastructure. Given the devastation and loss of power, substantially all customers in those areas were unable to receive our service, as of September 30. In an effort to ensure customers would not be charged for our services, we have proactively paused service for those customers. Accordingly, we removed approximately 145,000 subscribers from our third quarter ending Pay-TV count. This adjustment represents all of our subscribers in Puerto Rico and the Virgin Islands.

In the 50 states, net Pay-TV subscribers grew approximately 16,000 in the third quarter. This growth included the impacts of hurricanes Harvey and Irma. Combining the one-time removal of 145,000 subscribers in Puerto Rico, and the Virgin Islands, with these 16,000 net additions in the 50 states, Pay-TV subscribers declined, approximately 129,000.

Please note, in order to reflect the underlying trends in the business, other metrics, including gross new Pay-TV subscriber activations, net Pay-TV subscriber additions or losses and Pay-TV churn rate were not adjusted for the impact of Hurricane Maria. In the week following Hurricane Maria, we have been focused on disaster recovery efforts, such as setting up satellite Internet at hospitals and FEMA registration sites. Over the next year, it is our goal to economically reconnect to the majority of our subscribers in Puerto Rico and the Virgin Islands.

However, we cannot predict when customers will be able to receive our service, or how many may return to active subscriber status. In light of the situation, we expect to incur certain installation expenses in connection with reactivating our returning customers. For that reason, any returning customers will be recorded as gross new Pay-TV subscriber activations for the period in which they return. Lastly, while we expect to have lost revenue and additional expenses, as a result of Hurricane Maria, we do not expect them to have a material effect on our financial position or operating results.

With that, I will open up the call to Q&A. Operator?