NEW YORK — Dish Network Corp.’s third-quarter earnings more than trip led as it attempts to shift its focus to higher-end video customers.
The transition hasn’t been smooth: The company lost a net 29,000 customers for a second consecutive quarter.
A drastic retreat in spending from low- to mid-tier consumers is starting to take its toll on the pay-TV providers. Dish, which has in the past year heavily tapped the low-end base for growth with its discounted plans, is attempting to follow in rival DirecTV Group Inc.’s path and pursue more affluent customers in an effort to insulate itself from the weak economic conditions.
Douglas County-based Dish saw its performance improve as it added subscribers for five straight quarters before shedding them in the second. The company ended the third quarter with a base of 14.3 million customers.
Dish posted a profit of $245 million, or 55 cents a share, up from $81 million, or 18 cents a share, a year earlier. Revenue jumped 11 percent to $3.21 billion. Analysts polled by Thomson Reuters had most recently forecast earnings of 42 cents on $3.15 billion in revenue.
Investors continue to be skittish around Dish as it faces an ongoing patent-litigation battle with TiVo Inc., in which it has largely been on the losing end.
The two companies will face off again in a crucial hearing that starts next week.
Citadel Securities analyst Vijay Jayant still considers Dish a favorable stock, noting that its growing cash position could yield a return of capital to shareholders once the TiVo situation is resolved.
