Leap losses continue to widen despite rising revenues

26 Feb 2010

US-based cellco Leap Wireless International has reported a 25.4% year-on-year rise in revenue at the end of 2009, posting sales of USD2.14 billion in the full year, up from USD1.71 billion a year earlier. However, net loss widened by 40% over the period, from USD143.4 million at year-end 2008, to USD238 million twelve months later. The company attributed the losses to higher expenses and lower call charges as average revenue per user (ARPU) fell from USD43.5 in 2008 to USD40.2 in 2009. The company has continued to add to its customer base, adding over 1.1 million net new cellular subscribers in the twelve months ended 31 December 2009, with a consolidated total of 4.95 million subscribers at the same date. As reported by CommsUpdate on 4 February 2010, Leap is looking to sell its operations and has approached a number of operators, including MetroPCS, Verizon and AT&T, as it searches for a buyer. Of the three firms, MetroPCS appears the most likely to move for Leap and the cellco has reportedly contracted JP Morgan Chase and Co in an effort to negotiate a deal.

United States, Leap Wireless International