Leap up on solid quarter

Leap Wireless International Inc. reported a net loss for the fourth quarter and full year 2006, while revenues increased. The carrier added a total of 260,000 customers during the fourth quarter, news that helped send Leap’s stock up by almost 10 percent to $67.80 per share.
“Overall, it was a good quarter for Leap, as the company saw strong net adds as well as a rise in [average revenue per user],” said Ric Prentiss, an analyst with Raymond James. The investment-banking firm makes a market in the shares of Leap.
The regional carrier’s revenues for the fourth quarter totaled $314.5 million, up 37.4 percent from revenues of $228.9 million for the fourth quarter of 2005. Revenues for the full year came in at $1.14 billion, an increase of nearly 25 percent from $914.7 in 2005. Analysts were expecting revenues of about $316 million for the quarter and $1.14 billion for the year.
Net loss for the quarter was $39.4 million, a reversal of net income of $5 million during the fourth quarter of 2005. Net loss for the year was $4.1 million, down from a return of $30 million the previous year.
On the year, Leap added 592,237 net new customers, a significant increase from the 117,376 net adds it posted during 2005.
Leap said its churn rate was flat at 4.1 percent for the quarter and 3.9 percent for the year. ARPU was $44.68 for the quarter, up from $39.74 during the fourth quarter of 2005. ARPU for the year was $43.55, compared with $39.56 during 2005.
Leap said it expects to add between 260,000 and 320,000 net customers during the first quarter.