Leap Q1 revenues rise 14.1%; subscribers increase 8.3%

5 May 2011

US cellco Leap Wireless has reported revenues of USD779.9 million for the three months ended 31 March 2011, representing a 14.1% increase year-on-year. Adjusted OIBDA decreased 8.5% to USD112.5 million for the first quarter, down from USD123 million, whilst Leap registered a net loss of USD88.6 million, compared to a loss of USD65.4 million one year earlier. CAPEX for Q1 dropped from USD107.2 million to USD92.9 million. In operational terms, Leap ended the quarter with 5.85 million subscribers, up 8.3% from 5.4 million one year earlier. ARPU for 1Q11 edged up 3.4% to USD39.35.

Doug Hutcheson, Leap’s president and CEO, commented: ‘During the first quarter, we saw significant, continued progress across key customer performance metrics, including gross additions, churn and ARPU. First quarter gross additions were solid, even as we absorbed expected reductions in customer additions due to creating a simpler path for existing customers to upgrade. Customer upgrades for our compelling new devices have continued to be significant, and we recently reached a significant milestone by adding our one-millionth smartphone customer… We believe that our significant progress with these key customer metrics provides us with a solid foundation to deliver expanded adjusted OIBDA margins in the coming quarters’.

United States, Leap Wireless International