MetroPCS, which is just days away from completing its merger with T-Mobile USA, reported relatively flat first quarter results that considering the current competitive nature of the prepaid space could be considered a victory for the regional operator.
MetroPCS said that total revenues for the quarter increased 1% year-over-year to $1.287 billion, while net income dipped 8% to $19 million. Adjusted earnings before interest, taxes, depreciation and amortization managed to climb 11% year-over-year to $291 million with adjusted EBITDA as a percentage of service revenues increased from 22.6% in 2012 to 26.4% this year.
Helping to boost revenues was a 40 cents-per-subscriber increase in average revenue per user to $40.96 and a 58% increase in equipment revenues that managed to offset a 5% decrease in the carrier’s customer base at the end of the first quarter. MetroPCS did manage to add 108,668 customers during the first quarter of the year, which was down 17% from the first quarter of 2012, but was boosted by a drop in customer churn from 3.1% last year to 2.9% this year. MetroPCS ended its final quarter as a stand-along entity with just under 9 million total customers on its network.
MetroPCS shareholders yesterday voted to approve the company’s merger with T-Mobile USA that will see those investors share in a $1.5 billion payment from T-Mobile USA parent company Deutsche Telekom and maintain 26% interest in the combined operations. The vote was initially set for earlier this month, but was called off at the last minute as DT sweetened its offer in an attempt to guarantee approval from MetroPCS investors. MetroPCS noted that the deal is expected to close on April 30.
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