MetroPCS delivered improved financial performance despite a net loss of 186,000 subscribers in Q2 as the cost of operating its network decreased.
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... 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. "
Some notes:
- Net loss of 186,062 subscribers in Q2
- Quarterly churn of 3.4%, down 50 bps from the second quarter of 2011
- Quarterly ARPU of $40.62, an increase of $0.13 over second quarter 2011
- Surpassed 700 thousand 4G LTE subscribers, representing approximately 8% of total subscribers
- Total subscribers at the end of the quarter numbered 9,292,251
- 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.
- Cost per user (CPU) decreased to $18.40 in the second quarter of 2012, or a 3% decrease over the second quarter of 2011, 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 the 4G LTE network upgrade and roaming expenses associated with Metro USA.
