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Carrier takes a Leap forward by adding 258,000 new subscribers in Q1, plans major changes

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Carrier takes a Leap forward by adding 258,000 new subscribers in Q1, plans major changes
Leap Wireless took a major, uh, leap forward with its latest earnings report which showed a net gain of 258,000 new subscribers in the period. That brought the total number of Leap's customers to 6.2 million. Despite the positive news, the carrier had an operating loss of $15.8 million for the period, but that was an improvement from the $18.1 million operating loss in the previous year. Leap CEO Doug Hutcheson said that the carrier plans on refreshing its service plans and product portfolio including the introduction of seven new smartphones in time for the back-to-school season.
"We also intend to roll out our first major service plan enhancement in nearly two years in the second half of 2012, and believe these new plans will further position us to capture higher ARPU, higher value customers, while offering a variety of compelling options for consumers. As we have historically done, we expect that our new service plans will continue to put more value into our rate plans while providing opportunities for customers to select premium add-ons that meet their needs."-Doug Hutcheson, Leap Wireless CEO

Leap previously updated its plans two years ago when it added unlimited voice and texting options along with tiered data plans. As for the updated product portfolio, the executive said that they will offer more devices in each price point with more of a focus on high-end models. Speaking about high-end phones, the carrier's subsidy costs increased by $54 million from the prior year as more of its customers switched to smartphones. Hutcheson said that Leap Wireless will be taking steps to lower its subsidiary expenses in the next few months.

Breaking down Leap's quarterly report, 62% of new handset sales were for smartphones and Leap's ARPU reached $42.59 for an increase of  $3.24 from 2011. Churn was 3.3% up from 3.1% last year. Revenue for Q1 rose 14% to $774 million
+- Press Release

source: FierceWireless

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