The typical third-quarter malaise that seems to impact other no-contract customers each year continued to bypass MetroPCS Communications Inc. (PCS), which said it added more than 223,000 customers to its network during the quarter.
The results were in stark contrast to rival – and on-again, off-again rumored partner – Leap Wireless International Inc., which this week said it lost nearly 200,000 subscribers during the most recent quarter.
For MetroPCS the third quarter customer growth was significantly higher than the 66,157 customers it added during the third quarter of 2009 and pushed the carrier’s customer base to more than 7.857 million subscribers.
One factor impacting the strong growth was a dramatic decrease in customer churn, which plummeted from 5.8% during the third quarter of 2009 to 3.8% this year. The carrier attributed the drop to customers signing up for its Wireless for All rate plans as well as a decline in “false churn” related to its previous plans that offered the first month of service for free.
Customer fiscal metrics did dip during the quarter as average revenue per user dropped year-over-year from $41.08 to $39.69, the cost per gross addition increased from $153.94 to $160.54, and the cost per user increased from $17.27 to $18.47. MetroPCS attributed the ARPU decline to its new rate plans that include taxes and fees, while CPU increase was attributed to an increase in handset subsidies and the inclusion of regulatory fees in its rate plans.
Despite those challenges, MetroPCS’ total revenues increased 14% year-over-year to $1.021 billion during the third quarter. Net income also increased from $74 million during the third quarter of 2009, a return of 21 cents per share, to $77 million this year, a return of 22 cents per share.
MetroPCS’ stock was trading up more than 3.5% early Thursday at more than $11.20 per share.
Roaming, LTE expansion
In addition to its quarterly results, MetroPCS also announced today the launch of near-nationwide roaming capabilities for its Wireless for All rate plans. The new offering, dubbed Metro USA, allows customers to place calls, text messages and access data services across networks covering more than 90% of the country’s population.
Roaming partners for the service were not announced.
MetroPCS also said that it has expanded its LTE service to Los Angeles and Philadelphia, joining previously launched networks in Las Vegas, Dallas and Detroit. Customers in the new LTE markets can access the network using Samsung Electronics Co. Ltd.’s Craft device that retails for $300 and rate plans beginning at $55 per month.
MetroPCS said it plans to expand its LTE network through the rest of this year and into early 2011 to additional markets, including Atlanta; Boston; Jacksonville, Orlando, Tampa and Miami, Fla.; Sacramento and San Francisco, Calif.; and New York.
MetroPCS posts strong Q3 results, expands LTE coverage
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