Monday, January 23, 2012

Clearwire Ends 2011 with 10.4 Million Users

Clearwire reported preliminary Q4 2011 revenues of approximately $362 million, representing a more than doubling of revenues from the prior year's fourth quarter. Retail revenues are estimated to be approximately $198 million and wholesale revenues are estimated to be approximately $164 million for the period, representing 1% and 20% sequential growth, respectively, over third quarter 2011 retail and wholesale revenues.

Clearwire added approximately 900,000 net wholesale subscribers in Q4 2011, resulting in approximately 9.1 million ending wholesale subscribers, or 11% growth over third quarter 2011 ending wholesale subscribers. Combined with approximately 1.3 million retail subscribers at the end of the year, the company expects total subscribers at December 31, 2011 to be approximately 10.4 million, representing approximately 140% year over year growth. These results reflect 2.9% wholesale churn and 3.9% retail churn in fourth quarter 2011.

Fourth quarter 2011 aggregate usage by wholesale customers increased approximately 22% compared to third quarter 2011, driven primarily by growth in aggregate smartphone usage, which increased approximately 30% over the same period. Total 4G network usage by wholesale and retail customers increased 165% during 2011.

In addition, Clearwire announced the pricing of an offering of $300.0 million aggregate principal amount 14.75% first-priority senior secured notes due 2016 at an issue price of 100%).