Wednesday, April 25, 2012

MetroPCS Reaches 580,000 LTE Subscribers -- 6% of Customer Base

MetroPCS reported Q1 total revenues of approximately $1.3 billion, an increase of 7% over the first quarter of 2011. Adjusted EBITDA came in at $262 million, a decrease of 8% over the first quarter of 2011.

During Q1, MetroPCS surpassed 580 thousand 4G LTE subscribers, representing over 6% of total subscribers.

Roger D. Linquist, Chairman and Chief Executive Officer of MetroPCS, said, "Our first quarter results highlight our continued focus on getting affordable 4G LTE smartphones into the hands of our customers. We upgraded 16% of our subscriber base, 40% of which went from a feature phone to a smartphone, and we reported churn of 3.1%, matching the all-time low for the company. However, the significant number of upgrades at a higher promotional handset cost during the quarter resulted in higher costs and as a result both Adjusted EBITDA and Adjusted EBITDA margins were pressured significantly.

"The wireless industry is rapidly moving towards 4G LTE and while the first quarter presented us with challenges, we believe we remain well-positioned for long-term growth and success. In wireless, speed does matter and our 4G LTE network will provide a significant enhancement in the customer experience when compared to our current 3G CDMA experience. Our service plans offer the predictability, affordability and flexibility our customers have come to expect, and with all taxes and regulatory fees included, and no contract, we believe we continue to offer the best deal in town," Linquist concluded.

Some highlights:

Quarterly churn of 3.1%, down 60 basis points from the fourth quarter of 2011 and flat when compared to the first quarter of 2011.

Quarterly net subscriber additions of 132 thousand, resulting in a 7% increase in total subscribers over the prior twelve month period.

Quarterly ARPU of $40.56, an increase of $0.14 over first quarter 2011.

For the year ending December 31, 2012, MetroPCS today reaffirms its prior guidance, originally provided on February 23, 2012.

MetroPCS currently expects to incur capital expenditures in the range of $900 million to $1.0 billion on a consolidated basis for the year ending December 31, 2012.