MetroPCS sees growth in revenue, income

Regional wireless operator MetroPCS Communications Inc. reported a 23% jump in total revenue and an 11% rise in income, while average revenue per user and net subscriber additions declined slightly.
Despite solid subscriber gains, the company’s results fell below Wall Street expectations.
MetroPCS’ shares were down 4.5% in midday trading to $19.12 per share.
Total revenue for the company reached $662 million, up 23% over the year-ago quarter. Net income reached $40 million, up 11% over the year-ago quarter. The company pegged the increased revenue to the net addition of more than 1 million subscribers over the year-ago quarter.
ARPU dipped to $42.22 from $43.75 in the year-ago quarter, which the company attributed to higher participation in its family plans and the inclusion in its service plans of services formerly charged on an ala carte basis. Churn remained flat at 4%.
The company reaffirmed its guidance, given in November 2007, of 1.25 million to 1.52 million net adds for 2008 and earnings from continuing operations of $750 million to $850 million.
The company remains focused on building out its network in Philadelphia, Boston and New York, with those markets expected to come online in the fourth-quarter of 2008, first quarter 2009 and first half of 2009, respectively.