Virgin Mobile USA results disappoint

17 Mar 2008

The US mobile virtual network operator (MVNO) Virgin Mobile USA has reported a fall in fourth quarter net losses from USD44.9 million in Q4 2006 to USD14.7 million in the final three months of 2007. Revenues for the period were up 8% at USD293.6 million. Though the results were positive they were well short of analyst expectations; the cellco has also issued disappointing guidance for first quarter 2008 results, with sales for the period expected to reach approximately USD300 million, compared with analyst predictions of USD375 million. Virgin Mobile USA’s share price fell by more than 40% after the initial announcement though later rallied.

United States