Dash stories greater post-paid subscriber additions however nonetheless hit with internet loss

Dash Stories Highest First Quarter Postpaid Telephone Internet Additions in 9 Years, Lowest Ever Postpaid Telephone Churn, and Postpaid Internet Port Constructive Towards All Three Nationwide Carriers with First Quarter of Fiscal Yr 2016 Outcomes

Postpaid telephone internet additions of 173,000 are the fourth consecutive quarter of constructive internet additions

Postpaid telephone churn of 1.39 % is the perfect in firm historical past and improved year-over-year for the sixth consecutive quarter

Postpaid internet port constructive towards all three nationwide carriers for the primary time in over 5 years

Internet lack of $302 million, Working revenue of $361 million and Adjusted EBITDA* of $2.5 billion

Over $550 million of year-over-year discount in value of service and promoting, basic, and administrative bills

Internet money offered by working actions of $542 million improved by greater than $400 million year-over-year; Adjusted free money move* of $466 million grew by $2.7 billion year-over-year

Delivering monetary flexibility with almost $11 billion of liquidity, together with $5.1 billion of money, money equivalents and short-term investments

Efficiently raised $5.eight billion of liquidity within the quarter, together with $2.2 billion of network-related financing, $1.1 billion from the second transaction with Cellular Leasing Options, LLC (MLS), and $2.5 billion beneath a brand new unsecured financing facility

LTE Plus Community now obtainable in 237 markets

2.5GHz spectrum now carries extra of Dash’s LTE visitors than some other spectrum band

OVERLAND PARK, Kan. (BUSINESS WIRE), July 25, 2016 – Dash Company (NYSE:S) at the moment reported working outcomes for the primary quarter of fiscal yr 2016, together with the bottom postpaid telephone churn in firm historical past at 1.39 % and a complete liquidity place of almost $11 billion. The corporate additionally reported complete internet working revenues of $eight billion, internet lack of $302 million, working revenue of $361 million, and Adjusted EBITDA* of $2.5 billion.

“We had one other quarter of strong progress in our turnaround with the very best first quarter postpaid telephone internet additions in 9 years1, the bottom postpaid telephone churn in firm historical past, and eventually being postpaid internet port constructive towards all three nationwide carriers after 5 years” stated Dash CEO Marcelo Claure. “We additionally grew wi-fi internet working income year-over-year whereas aggressively decreasing the money working bills of the enterprise and our community is performing higher than ever.”

Highest Fiscal First Quarter Postpaid Telephone Internet Additions in 9 Years1

Dash’s concentrate on delivering the most effective worth proposition in wi-fi resulted within the highest fiscal first quarter postpaid telephone internet additions in 9 years and the fourth consecutive quarter of constructive internet additions with 173,000 within the quarter in comparison with internet losses of 12,000 within the prior yr quarter. The 185,000 year-over-year enchancment was pushed by each higher acquisition and retention, as postpaid telephone gross additions have been up 10 % year-over-year and postpaid telephone churn of 1.39 % improved 10 foundation factors to succeed in the bottom degree in firm historical past. Postpaid telephone churn has improved year-over-year for six consecutive quarters.

The corporate just lately launched an promoting marketing campaign that includes Paul Marcarelli, the actor who used to ask when you “might hear me now” for Verizon, to spotlight the truth that networks immediately aren’t that totally different so why ought to clients pay extra. The marketing campaign has been one of the profitable in firm historical past. The advert has been seen over eight million occasions on YouTube and the corporate turned postpaid internet port constructive towards all three nationwide carriers for the primary time in over 5 years. Are you able to hear that?

The corporate additionally reported the next Dash platform outcomes:

Complete internet additions have been 377,000 within the quarter, together with postpaid internet additions of 180,000, pay as you go internet losses of 331,000, and wholesale and affiliate internet additions of 528,000.
Complete postpaid churn of 1.56 % within the quarter was flat year-over-year.
Prime Line Stabilizes as Value Reductions Proceed

With tendencies enhancing in its postpaid telephone enterprise, Dash reported complete internet working revenues that have been flat to the prior yr quarter for the primary time in over two years. As well as, wi-fi internet working revenues grew 1 % year-over-year and postpaid wi-fi service revenues have remained at $four.eight billion for the final three quarters.

Dash additionally made appreciable progress in its ongoing effort to rework the fee construction of the enterprise, as the corporate realized over $550 million year-over-year discount in value of providers and promoting, common and administrative (SG&A) bills. The corporate stays on monitor to realize its aim of a sustainable discount of $2 billion or extra of run price working bills exiting fiscal yr 2016.

The corporate additionally reported the next monetary outcomes:

Internet lack of $302 million, or $zero.08 per share, within the quarter in comparison with a internet lack of $20 million, or $zero.01 per share within the year-ago interval. The present quarter included $113 million of non-recurring contract termination expenses primarily associated to the termination of the pre-existing wholesale association with Ntelos Holding Corp.
Working revenue of $361 million within the quarter in comparison with working revenue of $501 million within the year-ago quarter. Adjusting for the aforementioned contract termination expenses associated to the pre-existing wholesale association with Ntelos Holding Corp. within the present quarter, working revenue would have been comparatively flat year-over-year.
Adjusted EBITDA* of $2.5 billion within the quarter grew 18 % from the prior yr interval, primarily due to expense reductions, together with over $550 million in value of providers and SG&A bills.
Internet money offered by working actions was $542 million within the quarter in comparison with $128 million within the prior yr. The $414 million year-over-year enchancment was pushed by expense reductions and favorable modifications to working capital.
Adjusted free money circulate* was constructive $466 million within the quarter in comparison with adverse $2.2 billion within the prior yr. The $2.7 billion year-over-year enchancment was as a consequence of expense reductions, decrease capital spending, and internet proceeds from our second transaction with MLS.
Liquidity Place Grows to Almost $11 Billion

Dash took a number of actions in the course of the quarter to enhance its monetary flexibility, together with efficiently elevating $2.2 billion of network-related financing, $1.1 billion from a second transaction with MLS, and $2.5 billion beneath a brand new unsecured financing facility, which was elevated from its unique $2 billion quantity inside the quarter. These transactions helped improve the corporate’s liquidity place to just about $11 billion on the finish of the quarter, together with $5.1 billion of money, money equivalents and short-term investments. Moreover, the corporate has $1.1 billion of availability beneath vendor financing agreements that can be utilized towards the acquisition of two.5GHz community gear.

The corporate continues to pursue further financing initiatives, together with further handset and receivables financing transactions and a securitization involving a small portion of its spectrum belongings.

LTE Plus Community Enlargement Contributes to Velocity and Reliability Efficiency

Dash goals to unlock the worth of the U.S.’s largest spectrum holding by densifying and optimizing its community to offer clients the most effective expertise. The Dash LTE Plus Community, which mixes a wealthy tri-band spectrum portfolio with the LTE Superior options of service aggregation and antenna beamforming, launched in 33 further markets, growing the full to 237 markets throughout the nation.

Dash’s LTE Plus Community enlargement and its densification and optimization technique have pushed vital enhancements in each knowledge speeds and community reliability as famous by a number of third get together sources.

Dash’s LTE Plus Community continued to outperform Verizon, AT&T, and T-Cellular by delivering the quickest LTE obtain speeds based mostly on current crowd-sourced knowledge from Nielsen.2 Moreover, Dash’s reliability beat T-Cellular and carried out inside 1 % of AT&T and Verizon.three
Unbiased cellular analytics agency RootMetrics® awarded Dash 75 % extra first place Community Reliability RootScore® Awards (from 24 to 42) within the 125 markets measured within the first half of 2016 in comparison with the prior testing interval, together with wins in Chicago, Houston, and Atlanta.four
Dash’s reliability beat Verizon and its common obtain speeds beat AT&T and T-Cellular, in line with PC Journal’s Quickest Cellular Networks 2016 report.
Dash’s deployment of two.5GHz spectrum has develop into an integral a part of how the corporate meets the rising knowledge utilization and velocity calls for of its clients, as that spectrum band now carries the very best proportion of Dash’s LTE knowledge visitors.

Fiscal Yr 2016 Outlook

The corporate continues to anticipate:

Working revenue of $1 billion to $1.5 billion
Adjusted EBITDA* of $9.5 billion to $10 billion
Money capital expenditures, excluding units leased by means of oblique channels, of roughly $three billion
Adjusted free money movement* round break-even