Dish Network 2008 Annual Report Download - page 54

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Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - Continued
44
RESULTS OF OPERATIONS
Year Ended December 31, 2008 Compared to the Year Ended December 31, 2007.
For the Years Ended December 31, Variance
Statements of Operations Data 2008 2007 Amount %
(In thousands)
Revenue:
Subscriber-related revenue............................................................................ 11,455,575$ 10,690,976$ 764,599$ 7.2
Equipment sales and other revenue............................................................... 124,261 399,399 (275,138) (68.9)
Equipment sales, transitional services and other revenue - EchoStar............ 37,351 - 37,351 NM
Total revenue......................................................................................... 11,617,187 11,090,375 526,812 4.8
Costs and Expenses:
Subscriber-related expenses....................................................................... 5,977,355 5,496,579 480,776 8.7
% of Subscriber-related revenue..................................................... 52.2% 51.4%
Satellite and transmission expenses - EchoStar.......................................... 305,322 - 305,322 NM
% of Subscriber-related revenue..................................................... 2.7% 0.0%
Satellite and transmission expenses - other................................................ 32,407 180,687 (148,280) (82.1)
% of Subscriber-related revenue..................................................... 0.3% 1.7%
Equipment, transitional services and other cost of sales............................ 169,917 281,722 (111,805) (39.7)
Subscriber acquisition costs....................................................................... 1,531,741 1,570,415 (38,674) (2.5)
General and administrative expenses......................................................... 544,035
624,251 (80,216) (12.8)
% of Total revenue............................................................................ 4.7% 5.6%
Litigation expense...................................................................................... - 33,907 (33,907) (100.0)
Depreciation and amortization................................................................... 1,000,230 1,329,410 (329,180) (24.8)
Total costs and expenses........................................................................ 9,561,007 9,516,971 44,036 0.5
Operating income (loss)................................................................................ 2,056,180 1,573,404 482,776 30.7
Other Income (Expense):
Interest income.............................................................................................. 51,217 137,872 (86,655) (62.9)
Interest expense, net of amounts capitalized................................................. (369,878) (405,319) 35,441 8.7
Other, net...................................................................................................... (168,713) (55,804) (112,909) NM
Total other income (expense)................................................................. (487,374) (323,251) (164,123) (50.8)
Income (loss) before income taxes................................................................ 1,568,806 1,250,153
318,653 25.5
Income tax (provision) benefit, net............................................................... (665,859)
(494,099) (171,760) (34.8)
Effective tax rate ................................................................................. 42.4% 39.5%
Net income (loss).......................................................................................... 902,947$ 756,054$ 146,893$ 19.4
Other Data:
DISH Network subscribers, as of period end (in millions)........................... 13.678 13.780 (0.102) (0.7)
DISH Network subscriber additions, gross (in millions)............................... 2.966 3.434 (0.468) (13.6)
DISH Network subscriber additions, net (in millions).................................. (0.102) 0.675 (0.777) (115.1)
Average monthly subscriber churn rate......................................................... 1.86% 1.70% 0.16% 9.4
Average monthly revenue per subscriber ("ARPU").................................... 69.27$ 65.83$ 3.44$ 5.2
Average subscriber acquisition costs per subscriber ("SAC")...................... 720$ 656$ 64$ 9.8
EBITDA........................................................................................................ 2,887,697$ 2,847,010$ 40,687$ 1.4