Virgin profits jump 301%

12 May 2009

Virgin Mobile USA has reported net profit of USD19 million for the first quarter of 2009, a 301% increase year-on-year. Revenues climbed to USD337 million in the three months ended 31 March 2009 from USD330 million in 1Q 2008. The mobile virtual network operator (MVNO) benefited from reduced expenses in the quarter, halving its capital expenditure to USD3.2 million and seeing operating expenses drop to USD301 million from USD313 million a year earlier. The company attributed its success to the launch of several new services including a new USD49.99 unlimited plan. ‘We are pleased with our first quarter results and the initial success of our new offers focused on high-quality customer additions,’ said Dan Schulman, Chief Executive Officer, Virgin Mobile USA. The company lost 133,292 net subscribers in the three month period, reducing its total to 5.25 million.

United States