Clearwire posts net loss of USD227m in 1Q13; subs base continues to decline

26 Apr 2013

US WiMAX giant Clearwire has announced revenues of USD318.0 million for the three months ended 31 March 2013, down slightly from the USD322.6 million generated in the corresponding period one year earlier. Adjusted EBITDA remains negative however, with the telco reporting a loss of USD51.5 million for the period under review, compared to a deficit of USD38.2 million in 1Q12. Further, Clearwire posted a quarterly net loss of USD227.0 million, compared to a loss of USD182 million one year earlier.

In operational terms, Clearwire ended March with a consolidated subscriber base of 9.413 million, broken down as 7.944 million wholesale customers and 1.469 million retail users. Although Clearwire added 108,000 net retail connections in 1Q13, it shed 270,000 net wholesale users during the January-March period, principally as a result of the discontinuation of post-paid WiMAX offerings by co-owner Sprint Nextel. TeleGeography notes that Clearwire’s wholesale figures have been in decline since 1Q12, when Sprint – which accounts for ‘substantially all’ of Clearwire’s wholesale customer base – announced that it was phasing out its mobile WiMAX service, in favour of its own competing 4G Long Term Evolution (LTE) technology.

Erik Prusch, president and CEO of Clearwire, commented: ‘Our ongoing focus on driving our retail business cash contribution, controlling costs and maintaining liquidity continues to yield results. Our day-to-day focus on delivering for our customers and the substantial progress on the Time-Division Duplex (TDD-) LTE network build demonstrate the company’s commitment to execution during this transition period’.

United States, Clearwire