TracFone stutters with quarterly net adds of just 5,000

28 Oct 2013

Miami-based TracFone Wireless, America Movil’s US mobile virtual network operator (MVNO) unit, has reported net subscriber additions of just 5,000 in the third quarter of 2013, the Mexican parent company has confirmed. The low figure follows TracFone’s net subscriber loss of 192,000 in Q2 2013, which was blamed on a company-wide effort to purge inactive user accounts. TracFone attributes the low net additions to ‘disconnections resulting from the revaluation of the conditions of certain commercial plans’.

TracFone ended September 2013 with a total of 23.043 million customers, up from 23.639 million one year earlier. Despite the slow uptake, it posted revenues of USD1.494 billion for the three months under review, up 17.2% on an annualised basis. The company’s average revenue per user (ARPU) was USD20, up 10.7% from USD18 in 3Q12.

United States, TracFone Wireless