Summary
MetroPCS Communications, Inc. (TMUS) reported strong revenue growth in its first quarter of 2011, with total revenues increasing by 23% year-over-year to $1.19 billion. This growth was driven by a 23% increase in both service and equipment revenues, reflecting a robust customer base expansion. The company added over 725,000 net new customers, bringing its total subscriber count to nearly 8.9 million. Despite increased operating expenses, including a 30% rise in the cost of equipment and a 19% increase in depreciation and amortization, MetroPCS demonstrated significant operational leverage. Income from operations grew by 38% to $145.3 million. Net income more than doubled, increasing by 149% to $56.4 million, aided by a reduction in interest expense. The company maintained a strong liquidity position with approximately $1.7 billion in cash, cash equivalents, and short-term investments at quarter-end.
Financial Highlights
51 data points| Revenue | $1.19B |
| Cost of Revenue | $750.68M |
| Gross Profit | $443.70M |
| SG&A Expenses | $169.77M |
| Operating Expenses | $1.05B |
| Operating Income | $145.34M |
| Interest Expense | $56.56M |
| Net Income | $56.38M |
| EPS (Basic) | $0.32 |
| EPS (Diluted) | $0.30 |
| Shares Outstanding (Basic) | 178.49M |
| Shares Outstanding (Diluted) | 180.70M |
Key Highlights
- 1Total revenues increased by 23% to $1.19 billion in Q1 2011 compared to Q1 2010.
- 2Net customer additions were strong at 725,945 in Q1 2011, contributing to an 8,881,055 total customer base.
- 3Income from operations saw a significant increase of 38% year-over-year.
- 4Net income more than doubled, growing by 149% to $56.4 million.
- 5Cash, cash equivalents, and short-term investments totaled approximately $1.7 billion at the end of the quarter.
- 6The company reported a decrease in average monthly churn rate to 3.1% from 3.7% in the prior year period.
- 7Average Revenue Per User (ARPU) increased to $40.42 from $39.83 year-over-year.