Dish Network Corp.'s Returns to Subscriber Growth in Second Quarter

The digital TV transition fueled Dish Network Corp.'s (DISH) return to subscriber growth in the second quarter, but earnings fell as a result of higher costs. The nation's second-largest satellite-TV provider has struggled to fend off competition from market leader DirecTV Group Inc. (DTV), as well as from telecommunications providers now offering their own video service. But the growth came at a price, as profits fell well short of Wall Street expectations , Wall Street Journal reports.

The company -- controlled by entrepreneur Charlie Ergen -- posted net income of $63.4 million on the quarter, or 14 cents a share, versus $335.9 million, or 75 cents a share, a year earlier.

Revenue was little changed at $2.904 billion versus $2.915 billion in the year-ago quarter.

Dish Network said its litigation costs in its fight with TiVo (NASDAQ: TIVO) totaled $196.4 million in the second quarter alone. The four-year-old court battle is over claims by TiVo that Dish Network violated TiVo patents by copying aspects of its digital video-recording technology in Dish’s own DVRs, a charge Dish denies , reports.

Gross subscriber additions during the quarter fell 3 percent to 731,000, far less than what some analysts expected , Reuters India reports.