Dish Network 2015 Annual Report Download - page 66

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Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
You should read the following management’s discussion and analysis of our financial condition and results of operations
together with the audited consolidated financial statements and notes to our financial statements included elsewhere in
this Annual Report on Form 10-K. This management’s discussion and analysis is intended to help provide an
understanding of our financial condition, changes in financial condition and results of our operations and contains
forward-looking statements that involve risks and uncertainties. The forward-looking statements are not historical facts,
but rather are based on current expectations, estimates, assumptions and projections about our industry, business and
future financial results. Our actual results could differ materially from the results contemplated by these forward-
looking statements due to a number of factors, including those discussed under the caption “Item 1A. Risk Factors” and
elsewhere in this Annual Report on Form 10-K. Furthermore, such forward-looking statements speak only as of the
date of this Annual Report on Form 10-K and we expressly disclaim any obligation to update any forward-looking
statements.
Overview
Our business strategy is to be the best provider of video services in the United States by providing products with the best
technology, outstanding customer service, and great value. We promote DISH branded programming packages as
providing our subscribers with a better “price-to-value” relationship than those available from other subscription
television service providers. We believe that there continues to be unsatisfied demand for high-quality, reasonably
priced subscription television services.
Our current revenue and profit is primarily derived from providing Pay-TV and broadband services to our subscribers.
We also generate revenue from equipment rental fees and other hardware related fees, including fees for DVRs, fees for
broadband equipment, equipment upgrade fees and additional outlet fees from subscribers with receivers with multiple
tuners; advertising services; and fees earned from our in-home service operations. Our most significant expenses are
subscriber-related expenses, which are primarily related to programming, subscriber acquisition costs and depreciation
and amortization.
Financial Highlights
2015 Consolidated Results of Operations and Key Operating Metrics
x Revenue of $15.069 billion
x Pay-TV ARPU of $86.79
x Net income attributable to DISH Network of $747 million and basic earnings per share of common stock of
$1.61
x Gross new Pay-TV subscriber activations of approximately 2.773 million
x Pay-TV SAC of $723
x Loss of approximately 81,000 net Pay-TV subscribers
x Pay-TV churn rate of 1.71%
x Addition of approximately 46,000 net broadband subscribers
Consolidated Financial Condition as of December 31, 2015
x Cash, cash equivalents and current marketable investment securities of $1.611 billion
x Total assets of $22.887 billion
x Total long-term debt and capital lease obligations of $13.756 billion