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MetroPCS reports Q1 earnings dropped 63% while net new subscribers fell 82%

Posted: , by Alan F.

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MetroPCS reports Q1 earnings dropped 63% while net new subscribers fell 82%
MetroPCS Chairman and CEO Roger D. Linquist

MetroPCS Chairman and CEO Roger D. Linquist

Contract free carrier MetroPCS had a tough first quarter, reporting that it had net profits of $21 million for the three months. Sure, the pre-paid carrier turned a profit, but the bottom line was down 63% from the $53 million that the company earned in last year's first quarter. Revenue dropped 7% to $1.277 billion. During the quarter, MetroPCS added 131,654 net new subscribers which was down a substantial 82% from the 725,945 new customers it added in last year's Q1. At 3.1%, churn was flat year-over-year, and down from the 3.7% recorded in last year's fourth quarter.

MetroPCS says that 6% of its subscribers are using its LTE network, which works out to 580,000 of its 9.5 million customers using 4G. 16% of the carrier's customers upgraded in the first quarter while 40% of these were customers moving on up from featurephones to smartphones. Higher costs from these upgrades and for promotions hurt MetroPCS' profit margin which came down despite the increase in revenue. MetroPCS has been spending money to expand its LTE coverage and by the third quarter of 2012, 95% of its CDMA footprint will be covered by LTE The pre-paid carrier does have a solution to raise its profit margin, which is to increase the number of its subscribers using LTE. To that end, the carrier will be offering low priced LTE models for the back to school season which will add more LTE users and widen profit margins.
"The wireless industry is rapidly moving towards 4G LTE and while the first quarter presented us with challenges, we believe we remain well-positioned for long-term growth and success. In wireless, speed does matter and our 4G LTE network will provide a significant enhancement in the customer experience when compared to our current 3G CDMA experience. Our service plans offer the predictability, affordability and flexibility our customers have come to expect, and with all taxes and regulatory fees included, and no contract, we believe we continue to offer the best deal in town."-Roger D. Linquist, Chairman and CEO of MetroPCS

source: MetroPCS

13 Comments
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posted on 26 Apr 2012, 11:14

1. Phoneguy007 (Posts: 218; Member since: 02 Jun 2011)


INTERESTING

posted on 26 Apr 2012, 12:24 4

2. issa8 (Posts: 54; Member since: 26 Jul 2011)


Probably because their phone selection really sucks. They need a SGS2 or top notch HTC because those LG's they offer are crappy.

posted on 26 Apr 2012, 12:34 1

3. eaxvac (Posts: 328; Member since: 15 Jan 2012)


Lol samsuck

posted on 26 Apr 2012, 16:39 2

10. issa8 (Posts: 54; Member since: 26 Jul 2011)


samsuck my d*ck

posted on 26 Apr 2012, 13:45 1

5. EclipseGSX (Posts: 1575; Member since: 18 Oct 2011)


You can always buy one of those and have it flashed over by someone. I think Metro isn't flashing phones themselves anymore. My friend has a EVO 3D on their network and their 3G is better than Sprints most of the time surprisingly

posted on 26 Apr 2012, 16:34

8. issa8 (Posts: 54; Member since: 26 Jul 2011)


I heard that SMS doesn't work when you use a flashed phone though.. have you hear anything about that?

posted on 26 Apr 2012, 16:38

9. EclipseGSX (Posts: 1575; Member since: 18 Oct 2011)


SMS works fine its MMS that can be tricky. There's a guy on XDA that has it working for HTC devices though

posted on 26 Apr 2012, 12:53

4. Sangeet (Posts: 232; Member since: 21 Apr 2012)


I didn't even knew about MetroPCS, i thought only AT&T, Sprint, Verizon and T-Mobile was there in the USA (as i am a non USA resident)
I can bet one thing for sure..
They are never gonna get the Iphone 4s cuz apple would never ever invest on them

posted on 26 Apr 2012, 15:01

6. itzmando (Posts: 114; Member since: 17 Oct 2011)


I kinda of see them as a Regional carrier, like US Cellular or Cricket. Even though they say they have nationwide coverage like the top 4, but they suck!

posted on 26 Apr 2012, 16:40

11. EclipseGSX (Posts: 1575; Member since: 18 Oct 2011)


Investing has nothing to do with it. If you have the cash Apple will supply but that would more than likely bankrupt MetroPCS

posted on 26 Apr 2012, 15:52

7. lsutigers (Posts: 710; Member since: 08 Mar 2009)


Virgin Mobile and Boost are taking a lot of the prepaid business, as seen yesterday in Sprint's earnings report. Also, it looks like they will be adding 4G WiMAX to Virgin Mobile and Boost, prepaid is getting as cut-throat as postpaid.

posted on 26 Apr 2012, 21:02 1

12. JunitoNH (Posts: 864; Member since: 15 Feb 2012)


Metro problems have nothing to do with the selection of phones, rather its inability to do the basic, stay connected. If you ever dealt with them, then you know exactly what I'm talking about.

posted on 26 Apr 2012, 23:43

13. archangel9 (Posts: 230; Member since: 07 Feb 2010)


I know exactly what your talking about.Had them back in 06 and 07 nothing but bad karma. Afterwards,moved on to the 2 big dogs(VZW/ATT)too expensive and completely happy with Sprint,as long as they get their LTE act together.

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