*Press Release* MetroPCS Releases Fourth Quarter 2008 Subscriber Results Fourth Quarter 2008 Subscriber Highlights Include: Quarterly net subscriber additions of approximately 520 thousand, highest quarterly net additions in company history 74% increase in year over year net additions 55% increase in year over year gross additions DALLAS--(BUSINESS WIRE)--Jan. 6, 2009--MetroPCS Communications, Inc. (NYSE: PCS), the nation's leading provider of unlimited wireless communications service for an affordable flat-rate with no signed contract, today announced selected subscriber information for the quarter ended December 31, 2008. In the fourth quarter of 2008, on a consolidated basis, MetroPCS reported gross additions of approximately 1.3 million subscribers, which represents an increase of 55% over the fourth quarter of 2007. Churn for the fourth quarter of 2008 was 5.1% compared to 4.8% in the fourth quarter of 2007. MetroPCS ended the fourth quarter of 2008 with approximately 5.4 million subscribers, which includes net additions during the quarter of approximately 520 thousand subscribers, representing an increase of 74% over the fourth quarter of 2007. MetroPCS added over 1.4 million subscribers during the year ended December 31, 2008, which is an increase of approximately 37% over the subscriber additions during the year ended December 31, 2007, and has continued to achieve incremental penetration in every Core and Expansion Market. "We are very pleased to report fourth quarter net additions of 520 thousand, the highest quarterly net additions in company history. During the fourth quarter and for the full year 2008, our strong subscriber growth continues to prove the resiliency of the MetroPCS business model in the midst of the current unprecedented economic environment. As voice continues to go wireless, our innovative unlimited service offerings are uniquely tailored to provide subscribers with a predictable, affordable and flexible wireless solution that meets their needs," said Roger D. Linquist, MetroPCS' Chairman, President and Chief Executive Officer. "This year, for the sixth consecutive year, we have grown our subscriber base by 35% or higher. We are excited about our future growth potential given current landline replacement trends, the resiliency of our business model, as well as the incremental growth we expect from our planned service launches including Boston and New York in early 2009." Subscriber Metrics Three Months Three Months Twelve Months Twelve Months Ended Ended Ended Ended December 31, December 31, December 31, 2008 December 31, 2007 2008 2007 Consolidated Market Subscribers End of Period 5,366,833 3,962,786 5,366,833 3,962,786 Net Additions 519,519 298,568 1,404,047 1,021,800 Core Markets Subscribers End of Period 2,986,876 2,658,905 2,986,876 2,658,905 Net Additions 141,144 80,886 327,971 357,947 Expansion Markets Subscribers End of Period 2,379,957 1,303,881 2,379,957 1,303,881 Net Additions 378,375 217,682 1,076,076 663,853 The subscriber results of the fourth quarter of 2008 may not be reflective of subscriber results for any subsequent period. About MetroPCS Communications, Inc. Dallas-based MetroPCS Communications, Inc. (NYSE: PCS) is a provider of unlimited wireless communications service for a flat-rate with no signed contract. MetroPCS owns or has access to licenses covering a population of approximately 149 million people in the largest metropolitan areas in the United States, including New York City, Los Angeles, San Francisco, Dallas, Philadelphia, Atlanta, Detroit, Boston, Miami, Tampa, and Sacramento. MetroPCS ranked "Highest In Customer Satisfaction With Wireless Prepaid Service" in the J.D. Power and Associates third annual Prepaid Customer Satisfaction Study in July of 2008. As of December 31, 2008, MetroPCS has approximately 5.4 million subscribers. For more information please visit Unlimited Wireless Service - MetroPCS.
Re: MetroPCS Releases 4th Quarter 2008 Subscriber Results These numbers aren't too shocking seeing as MetroPCS has been expanding into tons of more markets. Here in Michigan, they've almost doubled their previous coverage area. They've moved into some more eastern Michigan cities that have been hard hit by the economic troubles that the nation is facing, so it's a great demographic to target. People are probably interested in making some changes and freeing up so extra costs, and what better way to do that than to switch to a carrier that offers unlimited voice and text and other things for such a cheap cost.
Re: MetroPCS Releases 4th Quarter 2008 Subscriber Results I wonder what percentage of those new customers are coming from the Los Angeles market? Probably a lot considering it's by far their largest market and by the many stores they have opened here.
Re: MetroPCS Releases 4th Quarter 2008 Subscriber Results Yeah, I'm sure many of the customers would come from LA seeing as they are the largest market as of now. I see that they plan on expanding into New York City soon as well as Boston. So that could have a potential to add even more customers.
Re: MetroPCS Releases 4th Quarter 2008 Subscriber Results What you said. Here is a recent WSJ article saying something along those lines about prepaid service: Newly Budget-Minded Turn to Prepaid Phones - WSJ.com
Re: MetroPCS Releases 4th Quarter 2008 Subscriber Results I mean, it only make sense. Especially people in inner cities that are being hit really hard by the economy. I would think about going to MetroPCS (if they offered service in my town) if they had a larger and better selection of phones. If I'm going to enjoy unlimited voice, text, email, and data, I'd want a good phone that can do all those things and not a cheap one that really can't. I understand that since you're not signing a contract that cost of the phone goes up dramatically, but I'd be willing to pay more for a phone knowing that I get unlimited everything for such a cheap amount each month.
Leap (Cricket) Announces subscriber numbers for 2008 *Press Release* Leap Announces Net Customer Additions for Fourth Quarter and Full Year 2008 Company ends 2008 with approximately 3.84 million customers, a year-over-year increase of 34% SAN DIEGO--(BUSINESS WIRE)--Jan. 7, 2009--In advance of its previously announced presentation at the 2009 Citi Global Entertainment, Media and Telecommunications Conference on Thursday, January 8, 2009, Leap Wireless International, Inc. (NASDAQ:LEAP), the parent company of Cricket Communications, Inc., a leading provider of unlimited wireless services, today announced that it gained approximately 385,000 net customer additions during the fourth quarter of 2008, including approximately 173,000 net additions in the Company's existing markets1, approximately 133,000 net additions in the Company's expansion markets2 and approximately 79,000 broadband net additions. Total Company net additions for 2008 were approximately 941,000 and Leap ended the year with approximately 3.84 million customers. Total Company customer churn for the fourth quarter of 2008 was 3.8 percent; customer churn for the existing business was 3.7 percent, compared to 4.2 percent for the existing business in the fourth quarter of 2007. "We are pleased with the Company's end-of-year performance in the midst of a weakened economy," said Doug Hutcheson, Leap's CEO and President. "Strong performance in the Company's existing markets reflects the success of our market enhancement strategies, and our broadband customer additions were strong and within our guidance. Customer churn performed as we anticipated as customer tenure in our existing markets continues to increase. Customer buying patterns throughout the holiday season continued as expected, although we anticipate that lower-than-expected purchases of additional services may impact ARPU on a sequential quarterly basis. Once again, the business has shown its strength and resiliency in the face of economic uncertainty, and with our broad suite of products and unlimited services, we believe we are well positioned for continued customer growth and operating margin improvement in 2009 as the business gains additional scale and continues to focus on cost reduction initiatives." 1 The term "existing markets" refers to the Company's markets in operation as of December 31, 2007, excluding the effects of the Company's mobile broadband initiative and its Cricket PAYGoTM prepaid wireless service. 2 Results for expansion markets include net customer additions for voice services in new markets launched in 2008 as well as for the Company's Cricket PAYGo prepaid wireless service. About Leap Leap provides innovative, high-value wireless services to a fast-growing, young and ethnically diverse customer base. With the value of unlimited wireless services as the foundation of its business, Leap pioneered its Cricket service. The Company and its joint ventures now operate in 30 states and hold licenses in 35 of the top 50 U.S. markets. Through its affordable, flat-rate service plans, Cricket offers customers a choice of unlimited voice, text, data and mobile Web services. Headquartered in San Diego, Calif., Leap is traded on the NASDAQ Global Select Market under the ticker symbol "LEAP." For more information, please visit Welcome to Leap Wireless.
I've consolidated the Leap and Metro PCS posts, and pinned this thread to discuss the results of all the carriers.
Verizon reported this morning Verizon Reports Sustained Revenue Growth and Continued Strong Cash Flows for 4Q and Full-Year 2008: Financial News - Yahoo! Finance Wireless * 1.4 million organic (non-acquisition-related) net customer additions, almost all retail; 1.2 million total net customer additions, including a net customer loss under a previously announced exchange agreement related to the 3Q 2008 acquisition of Rural Cellular. * 72.1 million total customers; 70.0 million retail customers, up 9.9 percent, not including customers added with the Jan. 9, 2009, acquisition of Alltel. * 12.3 percent increase in total revenues; data revenues up 41.4 percent; ARPU growth for 11th consecutive quarter; strong 47.2 percent EBITDA margin on service revenues (non-GAAP).
AT&T reported this morning AT&T Reports Fourth-Quarter and Full-Year Results Highlighted by Robust Wireless Data Growth, Accelerated U-verse TV Ramp, Continued Double-Digit Growth in IP Data Services: Financial News - Yahoo! Finance
In terms of regular customer additions, AT&T outgained Verizon by a pretty good amount. Probably had to do with the iPhone.
Though T-Mobile won't release 4Q and full year financials until February 27th, subscriber numbers have been reported for info purposes. Thanks to the Boy Genius Report for the information below.
I think these smaller companies are going to have a tough time with this economy & it will be interesting to see who survives & who doesn't & get's eaten up by the large carriers. I guess the Gphone wasn't has helpful as T-Mobile had hoped so far
T-Mobile's phone selection still leaves something to be desired. It has improved but... Though the G1 is a nice smartphone, it's barely been released to the masses outside of T-Mo's 3G footprint. This is a prime example of how their small 3G footprint seriously affects the benefits of what the G1 can do. Though it's not a deal-breaker, it certainly doesn't help. It will be interesting to see if the G1 carries the company more with 1st Quarter adds. We'll see...
Here's the full TM PR: T-Mobile USA Reports 32.8 Million Customers at the End of 2008: Financial News - Yahoo! Finance An awful quarter with regards to churn. Gross adds for the year were down significantly as well. TM doesn't have the competitive advantage they used to have. The iPhone and BB Storm are game changers (public perception - technical capabilities don't matter as much IMO), and the G1, as noted above, isn't available widely enough, nor advertised effectively, in my view. It is a good device though and I am considering it when I can upgade in the spring, although I won't get 3G service until later this year. TM probably won't have a 3G BB by then, AFAIK. In the PR, TM states that their 3G network now covers 107M people. Not bad for three months after launch, but behind the others.
I thought the G1 was going to help T-Mobile a bit. But we can all blame the iPhone for the increment in T-Mobile's churn.
Part of the problem was until last week you could only get the G1 online, or in a TM store that was in a 3G area. Stores around me didn't carry it - they could only place an order for you if you walked in. Not anymore though, they have them. iPhone has been a very expensive (short term) proposition for AT&T, but with the potential for extremely long term benefits do to the low churn of those customers. We'll have to see how the churn goes, since all of their iPhone customers I presume are under contract until this summer.
Sprint's largest affiliate iPCS: * Gross additions of approximately 65,900 * Net additions of approximately 16,700 * Average monthly churn, net of 30 day deactivations, of 2.3% * Ending subscribers of approximately 691,000
Re: Q4 2008, Year End 2008 Results - Sprint Sprint Nextel Corp., the nation's third-largest wireless carrier, reported a $1.6 billion fourth-quarter loss Thursday as it wrote off the remaining value of its 2005 purchase of Nextel Communications Inc. and continued to lose subscribers and revenue. But its adjusted loss was better than expected by Wall Street and the company predicted a smaller number of customer defections in the coming year. Its shares climbed 66 cents, or 24.4 percent, to $3.37 in morning trading. The Overland Park, Kan.-based company said its loss for the three months ending Dec. 31 was equal to 57 cents per share. By comparison, Sprint lost $29.3 billion, or $10.31 per share, during the same period a year ago. That figure included a $29 billion write-down of the value of its 2005 purchase of Nextel. Sprint said it wrote down the remaining $1 billion in goodwill value from the purchase during the fourth quarter. Not including the write-down and other one-time charges, the company said it would have lost a penny per share, better than the 3-cent-a-share loss expected, on average, by analysts surveyed by Thomson Reuters. "We have yet to turn the corner and we are far from satisfied with our performance," Chief Executive Dan Hesse told analysts during a conference call. He also said he expected the company to continue producing positive cash flow and be able to meet its debt payments through at least the end of 2010. Revenue fell 14 percent to $8.4 billion from $9.8 billion. Analysts expected $8.55 billion. Much of the decline came from a smaller number of subscribers. The company said it lost 1.3 million customers during the quarter, including 1.1 million "postpaid" customers who pay a monthly bill and are considered the most valuable. The subscriber losses took Sprint below the 50 million mark to 49.3 million, an 8.4 percent decline from the end of 2007. Churn, or the measure of subscriber turnover, was 2.16 percent, down from 2.29 percent a year ago but up from 2.15 percent in the third quarter. By comparison, AT&T Inc. gained 2.1 million wireless customers to 77 million during the quarter while Verizon Wireless added 1.4 million to end the year with 80 million.
Re: Q4 2008, Year End 2008 Results - US Cellular U.S. Cellular posts modest growth - RCR Wireless News
Here's a copy of T-Mobile's results. some highlights: 31% increase in data services revenue compared to the fourth quarter of 2007 Total messages carried in the quarter more than doubled compared to the fourth quarter of 2007 $4.9 billion service revenue in the fourth quarter of 2008, up 12% from the fourth quarter of 2007 621,000 net new customers added in the fourth quarter of 2008 At the end of 2008 the 3G network covers 130 cities
