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USA's Clearwire Sees Customer Base Decline As Losses Shrink
Published on:
USA based Clearwire has reported its fourth-quarter financial results and announced that revenues fell by 14% to US$311 million from US$362 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 US$312 million from US$433 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.
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