SunCom’s stock soars on increased revenues

SunCom Wireless Holdings Inc. said it expects to report increased service revenue driven by higher average revenue per user and roaming revenues, despite a slight decrease in net customer additions for the first quarter.
The company said service revenues during the quarter were about $186.4 million, up from $155.5 million during last year’s first quarter. ARPU was $55.70 during the quarter, up from $51.55 last year. Roaming service revenues totaled about $22 million, up from $21.5 million last year.
SunCom said it added 33,646 net subscribers on gross customer additions of nearly 108,000, down from 41,292 net customer additions on gross additions of 116,315 during last year’s first quarter. The company ended the quarter with a total of 1.12 million subscribers.
“The slight decline in gross and net add performance in the first quarter reflects a conscious strategy to pursue higher ARPU subscribers,” said Bill Robinson, executive vice president of operations.
SunCom’s stock surged more than 13 percent Friday following the announcement.