(Reuters) – Dish Network Corp (DISH.O) reported first-quarter revenue that missed Wall Street estimates on Tuesday as subscriber additions to its cheaper online streaming service Sling TV failed to offset a drop in its legacy pay-TV subscriptions.
The U.S. satellite TV provider lost another 94,000 subscribers for its pay-TV service in the quarter, while it added 91,000 subscribers for Sling TV.
Shares of Dish dipped 0.5 percent to $33.72 in morning trading.
Dish has been trying to lure young viewers to the $20-per-month online streaming service Sling as it battles cord cutting in its satellite-TV services, with viewers moving to competitors like Netflix Inc (NFLX.O) and Amazon.com Inc’s (AMZN.O) Prime Video.
Average revenue per user in the company’s pay-TV business fell to $84.50 from $86.55.
MoffettNathanson analyst Craig Moffett said in a research note that Dish’s average revenue per user could experience even more pressure in the future, as so-called skinny bundles, including its own Sling TV, cap Dish’s ability to raise prices.
Average revenue per Sling TV user is $25, Moffett estimated, much lower than Dish’s traditional TV customers.
Net income attributable to the company fell to $368 million, or 70 cents per share, for the quarter ended March 31, from $376 million, or 76 cents per share, a year earlier.
Revenue fell to $3.46 billion from $3.68 billion last year.
Analysts on an average were expecting a revenue of $3.5 billion, according to Thomson Reuters I/B/E/S.
Reporting by Arjun Panchadar in Bengaluru and Sheila Dang in New York; Editing by Arun Koyyur and David Gregorio
Learn More about forex trading signal