Virgin Mobile USA Quarterly Profits Surge

Virgin Mobile USA has reported a 301% jump in first quarter profits to US$19.1 million compared to US$4.7 million in the first quarter of 2008 - while revenues were largely flat at US$337.3 million, up 2% year over year.

"We are pleased with our first quarter results and the initial success of our new offers focused on high-quality customer additions," said Dan Schulman, Chief Executive Officer, Virgin Mobile USA. "Gross customer additions on hybrid plans grew to 55% of the total in the first quarter. Meanwhile, our Adjusted EBITDA excluding transition and restructuring expenses grew by 83% year over year, producing $7.0 million of free cash flow."

"Because of our strong performance in the first quarter, we are increasing our guidance for Adjusted EBITDA and free cash flow for 2009. Adjusted EBITDA excluding transition and restructuring expenses is expected to be $127 to $142 million, and free cash flow is expected to be $45 to $55 million for the full year 2009," Schulman said.

Data revenue in the first quarter of 2009 was 22% of net service revenue, up from 20% in the fourth quarter of 2008.

In the first quarter of 2009, Virgin Mobile USA's Adjusted EBITDA benefited from the Company's stated goal to focus on high-quality customer additions, which stimulated growth in the percentage of high-ARPU hybrid customer additions and a 16% increase in high-end handset sales, and contributed to the reduction in gross customer additions.

Posted to the site on 12th May 2009