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Leap Wireless Customer Losses Jump As Losses Shrink
Published on:
USA based Leap Wireless announced that its second-quarter revenues rose by 3.5 percent to US$786.8 million, and its net loss shrank slightly to US$46 million.
The company reported approximately 493,000 gross customer additions for the second quarter of 2012 but also approximately 289,000 net customer losses. That is sharply higher than the loss of 103,00 customers a year ago.
Net customer losses were comprised of approximately 205,000 voice customers and 84,000 broadband customers. Churn rose to 4.4 percent.
Reacting to the problems, Doug Hutcheson, Leap's president and CEO commented: "We are tightening our focus in our national retail channel by narrowing the number of retail locations and our marketing spend. In addition, we are reducing 2012 capital expenditures by approximately $80 million, principally by managing 3G network capacity investments, and are exploring cost-effective alternatives to deliver 4G services as we roll out LTE. We are also continuing to review alternatives to drive additional cash flow and value from our assets."
Total capital expenditures for 2012 are expected to be between $530 million and $560 million, including spending for the deployment of next-generation LTE network technology.
The company also confirmed that it is in talks with Sprint Nextel to lower its wholesale access charges from the expected US$75 million due in 2012.
Tags: [leap wireless] [USA]
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