SAN DIEGO—Leap Wireless International Inc. reported increasing profits and higher revenues during the second quarter. The carrier also scored 58,000 net customers during the quarter, a huge increase from net customer additions of about 2,700 during the second quarter of last year.
However, the carrier’s net additions were lower than some analysts had expected. Leap blamed T-Mobile USA Inc. for the situation. The carrier last month filed suit against T-Mobile USA, alleging that the national carrier has been undermining competition and interfering with the launch of Leap’s Cricket service in Houston.
Leap’s customer base totaled 1.84 million at the close of the quarter.
In the quarter, Leap’s churn was 3.6 percent and its average revenue per user was $42.97, up $3.73 from last year’s second quarter.
Looking forward, Leap said it expects to add between 110,000 and 210,000 new customers during the third quarter. Churn is expected to creep slightly higher to between 3.9 percent and 4.3 percent.
Leap’s revenues totaled $267.9 million in the quarter, up 18 percent from revenues of $226.8 million during the second quarter last year. Revenues slightly missed average analyst predictions of $271.36 million.
Net income came in at $7.5 million, substantially higher than net income of $1.1 million it reported during the same period last year.
Leap’s stock jumped by almost $4 per share following the company’s earnings news. The carrier’s stock was trading at around $44.47 per share following the news.
