Upfront smartphone costs hit MetroPCS bottom line

27 Apr 2012

US cellco MetroPCS has reported a 63% year-on-year drop in first-quarter net profit to USD21 million, despite a 10% rise in service revenues to USD1.16 billion and an increase in monthly blended ARPU to USD40.56, USD0.14 higher than the same period of last year. MetroPCS attributed falling profitability to rising costs of upgrading customers to smarthpones and 4G LTE devices, with EBITDA also reported at 8% lower year-on-year in the three months ended 31 March 2012, at USD262 million. Average cost per new customer activation leapt to USD235.45 in Q1 2012, up from USD157.28 in 1Q11. MetroPCS reached a total of 9.48 million subscribers at end-March, a net addition of 132,000 in three months.

United States, Metro by T-Mobile (formerly MetroPCS)