USA's Clearwire Sees Customer Base Decline As Losses Shrink
Published on: 13th Feb 2013
Note -- this news article is more than a year old.
By: Ian Mansfield
USA based Clearwire has reported its fourth quarter financial results and announced that revenues fell by 14% to USD311 million from USD362 million a year ago primarily due to the expected year over year decline in wholesale revenue.
Retail average revenue per user (ARPU) was $44.10 representing a decrease of $2.59 year over year compared to $46.69 in fourth quarter 2011 primarily due to lower equipment lease and activation revenue under the no-contract offering which was fully launched in 2012.
The operating loss fell though to USD312 million from USD433 million in 2011.
"In fourth quarter 2012, we have once again delivered solid results resulting in top-line growth and 50% year over year improvement in full year Adjusted EBITDA loss in 2012," said Erik Prusch, President and CEO of Clearwire.
Total revenue for full year 2012 increased 1% year over year to $1.26 billion driven by retail revenues which increased 5% to $795.6 million in 2012 from $758.3 million in 2011.
Clearwire ended last year with approximately 9.6 million total subscribers, down 8% from 10.4 million subscribers at the end of 2011. The decline in wholesale subscribers, which consist primarily of Sprint 3G/4G smartphone customers, is primarily due to the discontinuation of postpaid WiMAX offerings by Sprint.
The company is currently considering takeover bid approaches from both Sprint Nextel and Dish Networks.