Virgin Mobile USA Q2 Profits Up on Lower Revenues

Virgin Mobile USA, the MVNO that is shortly to be acquired by Sprint Nextel has reported second-quarter revenues down slightly at US$290 million compared to $293.8 million a year ago. Net income up up sharply though at $21.8 million compared to net income of $5.5 million in the second quarter of 2008.

Adjusted EBITDA of $43.9 million compared to $32.3 million in the second quarter of 2008, up 36%; Adjusted EBITDA excluding transition and restructuring expenses was $45 million compared to $33.4 million in the second quarter of 2008, up 35%.

"Our financial results in the first half of the year have exceeded our expectations," said Dan Schulman, Chief Executive Officer, Virgin Mobile USA. "We grew Adjusted EBITDA excluding transition and restructuring expenses by 57% to $98 million in the first half of 2009, producing Free cash flow of more than $29 million. We continue to exceed our financial expectations and remain confident in our guidance for Adjusted EBITDA and Free cash flow for the full year 2009."

"Our stated strategy is to focus on growing our highly profitable hybrid customer base. We made strong progress against this goal in the second quarter. Hybrid gross adds grew from 55% of total gross adds in Q1 to 63% in Q2, resulting in 20% year over year growth in total hybrid gross customer additions in the first half of 2009," continued Schulman.

As of June 30, 2009, Virgin Mobile USA had approximately 5.0 million customers.

Posted to the site on 10th August 2009