Clearwire stock down on Q3 earnings

Clearwire Corp.’s third-quarter operating loss widened as the operator built out new markets and increased its cost per gross addition from $404 a year ago to $563 today. Revenues were up 13% to $68.8 million. Despite its Q3 earnings, the biggest news of the day for the WiMAX carrier was word that its investors would contribute another $1.56 billion to its nationwide buildout.
The company added 44,000 net subscribers as it ramped up advertising in its new markets and slowed marketing efforts in its pre-WiMAX markets. Total subscriber count stands at 555,000. Fry’s Electronics and MicroCenter have been added as nationwide indirect sales distributors for the Clear-branded service.
Operating losses for the third quarter totaled $291.3 million, a 33% increase from losses of $219.3 million in Q3 2008. Clearwire said it expects its cost per gross addition (CPGA) to increase more in the fourth quarter as it launches in more markets. Average revenue per user was down slightly to $39.71 and churn held steady at 3%.
The carrier said it is on track with its fourth-quarter buildout plans and its fourth-quarter 2009 and 2010 business plans. “We don’t have to unseat any of the giant telcos to gain our fair share of this brand new market opportunity,” Clearwire CEO Bill Morrow said during the company’s earnings call.
The company’s stock was down more than 9% to $6.56 following the results.