|MetroPCS Reports Second Quarter 2012 Results|
Posted: 26-Jul-2012 [Source: MetroPCS]
[MetroPCS reported quarterly Adjusted EBITDA of $477 million for the second quarter 2012 and ended the quarter with 9.3 million subscribers.]
Dallas -- MetroPCS Communications, Inc. (PCS), the nation’s leading provider of no annual contract, unlimited, flat-rate wireless communications service, today announced financial and operational results for the quarter ended June 30, 2012. MetroPCS reported quarterly Adjusted EBITDA of $477 million for the second quarter 2012 and ended the quarter with 9.3 million subscribers.
Roger D. Linquist, Chairman and Chief Executive Officer of MetroPCS, said, “During the second quarter, we focused on generating Adjusted EBITDA and cash flow versus subscriber growth as we position for our anticipated launch of 4G LTE For All by the end of the third quarter. I’m pleased to report that with this emphasis, we reported both the highest Adjusted EBITDA as well as the highest Adjusted EBITDA margin in Company history as a result of this focus. Second quarter churn of 3.4% was primarily driven by continued investments in our network as well as lower year-to-date subscriber growth.
“Looking towards the remainder of 2012, we believe demand for high-speed wireless broadband service will increase and we will be well positioned to meet that demand with our 4G LTE network, which now serves approximately 8% of our subscriber base. With our plan to manage our current spectrum holdings, we believe our subscribers’ current and future anticipated data demands will be met. Importantly, we should have a full 10MHz dedicated to 4G LTE in most major metropolitan areas by the end of the year. Our 4G LTE handset ecosystem is building and we remain on track to launch 4G LTE For All by the end of the third quarter. During the fourth quarter, we expect our 4G LTE For All initiative to lead to a return to subscriber growth. As we focus on the launch of 4G LTE For All late in the third quarter, we expect incremental pressure on our CPGA and CPU. We believe we are the best deal in town when it comes to voice and text. In an increasingly data-centric world, our 4G LTE For All initiative we believe provides unmatched value, with all taxes and regulatory fees included,” Linquist concluded.
Quarterly Consolidated Results
* Consolidated service revenues of approximately $1.2 billion for the second quarter of 2012, an increase of $46 million, or 4%, when compared to the prior year’s second quarter.
* Income from operations increased $102 million, or 48%, for the second quarter of 2012 when compared to the prior year’s second quarter.
* Net income increased $65 million, or 77%, for the second quarter of 2012 when compared to the prior year’s second quarter.
* Adjusted EBITDA of $477 million increased by $120 million for the second quarter of 2012, or 33%, when compared to the prior year’s second quarter.
* Average revenue per user (ARPU) of $40.62 for the second quarter of 2012 represents an increase of $0.13 when compared to the second quarter of 2011. The increase in ARPU was primarily attributable to continued demand for our Wireless for All and 4G LTE service plans offset by promotional service plans and an increase in family plan penetration from 38% of our customer base as of June 30, 2011 to 42% of our customer base as of June 30, 2012.
* The Company’s cost per gross addition (CPGA) of $191 for the second quarter of 2012 represents an increase of $13 when compared to the prior year’s second quarter. The increase is primarily driven by lower gross additions partially offset by decreased promotional activities as compared to the three months ended June 30, 2011.
* Cost per user (CPU) decreased to $18.40 in the second quarter of 2012, or a 3% decrease over the second quarter of 2011. The decrease in CPU is primarily driven by a decrease in retention expense for existing customers as well as a decrease in long distance cost and taxes and regulatory fees. These items were partially offset by an increase in costs associated with our 4G LTE network upgrade and roaming expenses associated with Metro USA. During the quarter we experienced $3.06 in CPU directly related to handset upgrades compared to $3.73 in the prior year’s second quarter.
* Churn decreased 50 basis points from 3.9% to 3.4% when compared to the second quarter of 2011. The decrease in churn was primarily driven by continued investments in our network and lower year-to-date subscriber growth.
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