Pay-TV Helps DISH Network Clock 41% Q2 Revenue Growth, Earnings Beat

DISH Network Corp DISH reported second-quarter FY21 revenue growth of 40.8% year-on-year to $4.49 billion, beating the analyst consensus of $4.43 billion.
Segments: Pay-TV subscribers and related revenue expanded 1.7% Y/Y to $3.2 billion. Wireless services and related revenue were $1.1 billion. Pay-TV equipment sales and other revenue rose 37.4% Y/Y to $50.3 million, and Wireless equipment sales and other revenue grew 143% Y/Y to $184.3 million.
Service revenue expanded 35% Y/Y to $4.3 billion. Equipment sales and other revenue grew over 6x to $232.5 million.
Drivers: Net Pay-TV subscribers decreased 67,000 in Q2 FY21, compared to 96,000 in Q2 FY20.
DISH closed Q2 with 10.99 million Pay-TV subscribers, including 8.55 million DISH TV subscribers and 2.44 million SLING TV subscribers.
DISH acquired over 0.2 million wireless subscribers via an asset purchase agreement with Republic Wireless Inc. Additionally, it experienced a drop of 0.2 million retail wireless subscribers versus 0.16 million in Q1.
The company closed Q2 with 8.90 million retail wireless subscribers.
Margin: The gross margin contracted 177 bps to 35.7%. The gross margin for services expanded by 274 bps to 40.4%.
EPS of $1.06 beat the analyst consensus of $0.88.
The company held $4.8 billion in cash and equivalents.
It generated $2.3 billion in operating cash flow during the six months ended Jun. 30.
Price action: DISH shares traded higher by 0.98% at $42.38 on the last check Monday.