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

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

FEATURED VIDEO

13 Comments

1. Phoneguy007

Posts: 218; Member since: Jun 02, 2011

INTERESTING

2. issa8

Posts: 54; Member since: Jul 26, 2011

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

3. eaxvac

Posts: 328; Member since: Jan 15, 2012

Lol samsuck

10. issa8

Posts: 54; Member since: Jul 26, 2011

samsuck my d*ck

5. EclipseGSX

Posts: 1770; Member since: Oct 18, 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

8. issa8

Posts: 54; Member since: Jul 26, 2011

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

9. EclipseGSX

Posts: 1770; Member since: Oct 18, 2011

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

4. Sangeet

Posts: 232; Member since: Apr 21, 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

6. itzmando

Posts: 119; Member since: Oct 17, 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!

11. EclipseGSX

Posts: 1770; Member since: Oct 18, 2011

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

7. lsutigers

Posts: 832; Member since: Mar 08, 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.

12. JunitoNH

Posts: 1946; Member since: Feb 15, 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.

13. archangel9

Posts: 233; Member since: Feb 07, 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.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.