MetroPCS Communications, Inc. (NYSE:PCS - News), the nation’s leading provider of unlimited, flat-rate wireless communications service with no annual contract, today announced financial and operational results for the quarter ended March 31, 2011. MetroPCS reported growth in quarterly Adjusted EBITDA of approximately 28% over the first quarter 2010 and finished the first quarter 2011 with approximately 8.9 million subscribers.
“We reported record net subscriber additions of over seven hundred twenty-five thousand this quarter, the highest in company history. Building on the strong momentum we had throughout 2010, continued interest in our Wireless for All plans and in the significant uptake of our Android Smartphones, total subscriber growth was 21% year over year. We also reported churn of 3.1% representing a significant year over year reduction from first quarter 2010 churn of 3.7%. We believe we are well positioned in this competitive marketplace by providing mobile broadband on cutting-edge Smartphones for an affordable price to our subscribers,” said Roger D. Linquist, Chairman, President and Chief Executive Officer of MetroPCS.
“The Internet is going mobile and we believe our subscribers' demand for multimedia and video will continue to increase, specifically within the Android platform. Over time, our pay in advance subscribers will have more access to premium Smartphones enabling them to enjoy services that deliver entertainment, social networking and more sharing of content. 4G LTE is rapidly becoming the world standard and we now offer 4G LTE in all of our major metropolitan areas and we continue to expect to finish the majority of our planned build out by the end of 2011. With an exceptional first quarter, we are off to a great start this year and we will continue to be focused on profitable growth and building long term value for our shareholders,” Linquist concluded.
Key Consolidated Financial and Operating Metrics
(in millions, except percentages, per share, per subscriber and subscriber amounts)
Quarterly Consolidated Results
* Consolidated service revenues of approximately $1.1 billion for the first quarter, an increase of approximately $197 million, or 23%, when compared to the prior year’s first quarter.
* Income from operations increased $40 million, or 38%, for the quarter ended March 31, 2011 when compared to the prior year’s first quarter.
* Net income for the quarter increased $33 million, or 149%, for the quarter ended March 31, 2011 when compared to the prior year’s first quarter.
* Adjusted EBITDA of $285 million increased by $61 million, or approximately 28%, when compared to the same period in the previous year.
* Average revenue per user (ARPU) of $40.42 for the first quarter of 2011 represents an increase of $0.59 when compared to the first quarter of 2010 and an increase of $0.63 when compared to the fourth quarter of 2010. The increase in ARPU was primarily attributable to continued demand for our Wireless for All and 4G LTE rate plans.
* The Company’s cost per gross addition (CPGA) of $157.28 for the first quarter of 2011 represents an increase of $11.10 when compared to the prior year’s first quarter. The increase was primarily driven by increased promotional activities.
* Cost per user (CPU) increased to $19.79 in the first quarter of 2011, or 5%, when compared to the first quarter of 2010. The increase in CPU is primarily driven by the increase in handset subsidies on existing customers and the inclusion of regulatory fees in our Wireless for All service plans as well as costs associated with our 4G LTE network upgrade.
* Churn decreased 60 basis points from 3.7% to 3.1%, when compared to the first quarter of 2010. The decrease in churn was primarily driven by the continued acceptance of our Wireless for All service plans.