Editor’s Note: This is the Paw Print Rewind, a daily recap of the top news headlines.
Dish swing to 2015 loss as subscribers decline
Dish Network swung to a loss in 2015, hurt by a drop in pay-TV subscribers and a wireless airwaves auction-related expense.
The U.S.’ No. 2 satellite TV provider’s net income attributable to the company fell about 21 percent from a year ago to $747.1 million ($1.61/share).
Dish incurred a $516 million expense related to a government auction of wireless airwaves.
The Englewood, Colo.-based company also had a $123 million asset-impairment charge to weigh on earnings.
Dish ended 2015 with about 13.9 million pay-TV subscribers including streaming service Sling TV, a decline of 81,000 subscribers from the end of 2014.
Churn, the rate subscribers defect to other services, grew in 2015 to 1.71 percent form 1.59 percent in 2014.
For the full year, the company’s revenue grew about three percent to $15.07 billion, with average revenue per user rising to $86.79 in 2015 from $83.77 in 2014.
In the quarter ending Dec. 31, net loss attributable to the company was $125.3 million ($0.27/share), while total quarterly revenue grew to $3.78 billion from $3.68 billion.
Wal-Mart quarterly earnings fall
Wal-Mart Stores have reported lower quarterly earnings and cut its sales outlook due to a stronger dollar and recent store closures.
The Bentonville, Ark.-based retailer’s sales at U.S. stores open at least a year rose 0.6 percent in the fourth quarter ending Jan. 31 from a year ago for its’ sixth straight quarterly gain.
For the current quarter, Wal-Mart expected a U.S. same-store sales increase of 0.5 percent, down from the 1.1 percent rise a year ago.
“It’s the same old story. They continue to struggle to drive traffic and sales.”
-Brian Yarbrough, Edward Jones analyst
The company’s fourth-quarter net income fell 7.9 percent to $4.57 billion ($1.43/diluted share).
Excluding a charge for store closings and other items, earnings were $1.49/share.
Wal-Mart’s operating income fell 16 percent to $6.6 billion in the quarter.
Consolidated revenue declined 1.4 percent to $129.7 billion, depressed by the stronger dollar’s impact on international operations.
Uber losing $1 billion/year to compete in China
Uber is burning through over $1 billion a year in China to compete with local rival Didi Kuaidi, according to the company’s CEO.
“We’re profitable in the USA, but we’re losing over $1 billion a year in China. We have a fierce competitor that’s unprofitable in every city they exist in, but they’re buying up market share. I wish the world wasn’t that way.”
-Travis Kalanick, Uber CEO
“Smaller competitors have to bleed subsidies to make up for their insufficient driver and rider network.”
-Didi Kuaidi spokesperson
“I prefer building rather than fundraising, but if I don’t participate in the funding bonaza, I’ll get squeezed out by others buying market share.”
T-Mobile profit nearly triples, adds 2.1 million customers
T-Mobile US nearly tripled its profit in the fourth quarter, as its “Binge On” video streaming program and lower-priced plans helped it add over two million subscribers.
According to the Bellevue, WA-based company, net income jumped to $297 million ($0.34/share) in the quarter from $101 million ($0.12/share) a year ago.
Total revenue rose 1.1 percent to $8.25 billion.
“We aren’t just winning customers, we’re keeping them too. Contrary to the belief that most of the donation (of subscribers) in the industry is coming from Sprint, it’s actually coming to AT&T.”
-John Legere, T-Mobile CEO
T-Mobile added a net 2.1 million customers, including 1.3 million new monthly or postpaid customers in the quarter that ended on Dec. 31. In 2016, the company expects to add a net 2.4-3.4 million postpaid customers, compared with the 4.5 million customers added in 2015.
“Subscriber growth continues to be solid.”
-Craig Moffett, MoffettNathanson analyst
The company’s average revenue per postpaid user fell marginally to $48.05 in the fourth quarter from $48.26 a year earlier.
“T-Mobile was the only operator to not disappoint on ARPU, the monthly phone payments of its customers.”
-Walter Piecyk, BTIG Research analyst
Europe launches satellite to help track global warning
Europe launched the Sentinel-3A satellite Tuesday to help predict weather phenomena such as El Nino and track the progress of global warming as part of the multibillion-euro Copernicus Earth observation project.
The satellite, part of a system of satellites set to monitor Earth, blasted off on board a Rockot launcher from the Plesetsk cosmodrome in Russia’s northwestern Arkhangelsk region at 12:57 p.m. ET Tuesday.
It headed for orbit 506 miles above Earth, where it will collect data on sea surface temperature and height that will contribute to more precise weather forecasts and help forecast the impact of rising temperatures.
“When we speak about global warming, we often focus on rising air temperatures, but 90 percent of the energy put out on our planet ends up in the ocean.”
-Volker Liebig, European Space Agency Earth Observation program director
The Copernicus project has over $9 billion in funding committed until 2020.
Images taken by Sentinel-3A have a lower resolution than those from Copernicus’ first two satellites – Sentinel-1A and 2A. However, the 3A will cover a wider swath of Earth.
It can deliver images of the entire planet within two days, but that will be cut to under a day once its twin 3B launches next year. According to Liebig, that compares to around six days for the twin Sentinel-1 and Sentinel-2 satellites.
AmEx to overhaul management, cut jobs
American Express will overhaul its management, streamline its marketing operations, and cut jobs as it looks to reduce $1 billion in costs over the next two years.
“At this time, we do not know what the magnitude of those [job cuts] will be, as decisions on specific positions affected are yet to be made.”
-Kenneth Chenault, American Express CEO
According to the New York-based company, chief marketing officer John Hayes will leave the company after over 20 years of service.
According to AmEx, the company is consolidating its marketing operations to avoid duplicate infrastructure, resources, costs, and processes.
The company is creating a global marketing operations unit, which will be led by Mike McCormack.