MetroPCS Q2 Profits Down 48%

US mobile network operator, MetroPCS has reported a 27% increase in its second quarter revenues of US$860 million, but a near halving of the net profit from US$50 million to US$26 million. This was due primarily to an increase in launch expenses and the ramp up of operations in the Northeast Markets, partially offset by an increase in income from operations in the Core Markets.

The company reported quarterly growth in Consolidated Adjusted EBITDA of 11%, to approximately $234 million and finished the second quarter with approximately 6.3 million subscribers.

"Although we experienced an increase in churn during the second quarter, this was due in part to our success in delivering increased gross additions over the previous nine months, seasonality and handset upgrades from customers who did not identify themselves as existing customers," said Roger D. Linquist, Chairman, President and Chief Executive Officer of MetroPCS.

"After a full quarter of Northeast Market results, we are pleased with this segment's performance, highlighted by net subscriber additions of approximately 193 thousand during the second quarter. We continue to buildout and expand our network and increase distribution in parts of New York, New Jersey, Pennsylvania, Massachusetts and Connecticut, significantly enhancing our footprint beyond the initial launch footprint.

"While challenging economic conditions persist, we continue to invest in differentiation and we are bullish on the growth opportunity within pay-in-advance unlimited wireless. With 36% subscriber growth over the past year, we are confident our growth will continue. As a result, we have today reaffirmed our full year 2009 guidance," Linquist concluded.

Average revenue per user (ARPU) of US$40.52 for the quarter represents a decrease of US$1.53 when compared to the second quarter of 2008, but is slightly higher than earlier this year.

Posted to the site on 6th August 2009