MONTREAL-Canadian operator Microcell Telecommunications, which filed for bankruptcy and was taken over by its creditors earlier this year, reported a profit for the second quarter.
The company posted net income of $18.2 million for the second quarter compared with a net loss of $144 million for the same quarter in 2002. The operator lost about 92,000 subscribers from the end of the second quarter last year through the same period this year. It now has nearly 1.1 million customers.
The company credited debt restructuring, expense cutting and the higher value of the Canadian dollar for the results.
“Now with the recapitalization effectively concluded, we have resumed advertising, launched sales promotions and intensified marketing activity to stimulate sales channels and re-establish our market presence,” said Andre Tremblay, president and chief executive officer of the carrier, which operates the Fido-branded wireless service serving about 60 percent of Canada’s population. “These efforts are building momentum for the second half of the year by setting the stage for increased customer acquisition and revenue growth.”
Churn increased from 3 percent for the second-quarter 2002 to 3.3 percent for 2003. Blended average revenue per user was $27.92 compared with nearly $30 for the year-ago quarter.
