Boston, MA 02/21/2014 (wallstreetpr) – There are many ways of increasing revenues; the first and generally accepted one is to add more consumers. DISH Network Corp (NASDAQ:DISH) has seen revenues increase by the second method; increasing revenues from its current customer base.
The Fourth Quarter Results:
DISH Network Corp (NASDAQ:DISH) reported a 38% rise in fourth quarter profits on the back of higher revenues per subscriber. The company generated 5% increase in average revenues per subscriber and took the average revenues to $81.24 per subscriber in the fourth quarter. The subscriber base increased by 8,000 to reach14.1 million subscribers in the U.S. Revenues increased by 7% to $3.54 billion in the quarter. Analysts had expected the company to generate $3.59 billion in revenues. The net income attributable to the company was $288 million translating to $0.63 per share. The company had reported $209 million translating to $0.46 per share for the same period last year.
DISH Network Corp (NASDAQ:DISH) also announced that it will be buying $3.5 billion worth of shares.
Wireless Spectrum Strategy Not Yet Clear:
Investors were expecting the company would declare its strategy on the wireless spectrum; the company has accumulated so far. The company has spent billions in accumulating the spectrum and is keeping all options open. Possible options being considered are; acquisition of T-Mobile US Inc (NYSE:TMUS), building up its own wireless network or selling off the spectrum. Though investors and analysts were expecting the company to declare its intentions, it has kept the cards close to its chest.
Among other news about Dish Network, EchoStar Corp (NASDAQ:SATS) announced that it has reached a long-term operating lease agreement for transponder services with Dish Network. EchoStar will be receiving five satellites along with related liabilities from Dish Network along with $11 million in cash in exchange for two issues of preferred tracking stocks. EchoStar expects to generate revenues of $145 million from the satellites in this year.
The strategy of focusing on existing customers comes with several advantages and DISH Network Corp (NASDAQ:DISH) seems to have played its cards well.