Beleaguered wireless operator Clearwire Corp. said it added a record 1.9 million net wholesale customers to its network during the third quarter, ending the period with 9.5 million total customers on its network.
The carrier said that in combination with a reduction in operating expenses it expects to improve its adjusted earnings before interest, taxes, depreciation and amortization by more than 50% sequentially. In addition, the company said it posted $332 million in revenues during the quarter, which was a 126% year-over-year increase.
Wells Fargo Securities L.L.C. noted that the growth results were well ahead of their 1.5 million net customer addition estimates, with revenues coming in on top of forecasts. The firm added that it assumes at least 95% of those wholesale net additions were Sprint Nextel Corp. customers, which was equal to about 40% of Sprint Nextel’s devices sold during the quarter and further reinforcing the strategic ties between the two operators.
Sprint Nextel currently controls just over half of Clearwire, through there has been recent concern that the two operators have hit an impasse over Clearwire’s further network deployment plans and need for cash to fund LTE plans. Clearwire did note that it ended the quarter with approximately $700 million on hand, which was just ahead of Wells Fargo’s estimates of $646 million.
