6 Comments

Summary:

Prepaid mobile phone provider MetroPCS today reported profits of $14.6 million for the fourth quarter on sales of $723.6 million. The carrier didn’t meet Wall Street earnings expectations after writing down more than $90 million in auction rate securities, but it has added a significant number […]

metroPrepaid mobile phone provider MetroPCS today reported profits of $14.6 million for the fourth quarter on sales of $723.6 million. The carrier didn’t meet Wall Street earnings expectations after writing down more than $90 million in auction rate securities, but it has added a significant number of new subscribers thanks to its expansion into new markets and the economic turmoil driving folks to consider pre-paid phone plans.

MetroPCS added 519,519 new subscribers in the fourth quarter — its best quarter ever for subscriber additions. New subscribers during the last three months of the year comprised 37 percent of its 1.4 million net adds for the year. During the fourth quarter, 73 percent of new subscribers were from new markets. On an annual basis, 12 percent of Metro PCS growth came from its core markets and 83 percent from expansion markets.

It also plans to continue its growth into new markets (most recently launched were New York and Boston), although it said it would reduce capital expenditures for 2009 to $700-900 million, compared with spending of $1.2 billion last year.

The economy may be working its favor, but the two smaller U.S. carriers, T-Mobile and Sprint are ratcheting up the pressure with Sprint’s $50 unlimited data and talk plan through its Boost Mobile subsidiary and T-Mobile’s $50-a-month retention plan.

  1. yes, pretty impressive net-adds.

    Share
  2. So is the company, “Cricket”

    Share
  3. [...] told Wall Street last week that the fourth quarter of 2008 was its most successful quarter ever when it came to adding new customers. This was a reflection of the prepaid carrier’s [...]

    Share
  4. [...] Higginbotham | Wednesday, March 4, 2009 | 9:00 PM PT | 5 comments MetroPCS told Wall Street last week that the fourth quarter of 2008 was its most successful quarter ever when it came to adding new customers. This was a reflection of the prepaid carrier’s [...]

    Share
  5. [...] opting to keep a single line – preferably mobile, and preferably from lower cost mobile providers such as Metro PCS and T-Mobile. My belief is that telcos are in a race against time, and these landline losses are [...]

    Share
  6. [...] operator added 687,000 net new subscribers in the first quarter of this year, up 51 percent over last quarter’s record number. MetroPCS, which provides flat-rate service on a month-to-month basis to customers in limited [...]

    Share

Comments have been disabled for this post