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Leap revenue, loss up; customer adds down

SAN DIEGO-Leap Wireless International Inc. posted $151.1 million in total revenue for the second quarter, well ahead of the $47.8 million the company reported for the same quarter last year. Net losses also increased from $128.5 million last year, a loss of $3.91 per share, to a loss of $158.6 million this year, a loss of $4.23 per share.

Net customer additions for the quarter totaled 63,763 subscribers compared with 132,857 net additions for the second quarter last year and 268,719 net additions for the first quarter of this year. An increase in customer churn in Leap’s mature markets from 3.8 percent last year to 4.7 percent this year was to blame for some of the net customer addition shortfall.

Leap also reported a dramatic increase in cost per gross additions for the quarter, climbing from $245 last year to $316 this year, which the company said was partly due to a new advertising campaign.

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