Summary
MetroPCS Communications, Inc. reported its financial results for the third quarter of 2012. The company experienced a decrease in service revenues year-over-year, primarily due to customer losses and a slight reduction in average revenue per user. However, equipment revenues saw a significant increase, driven by higher average handset prices. Operationally, MetroPCS's income from operations saw a substantial increase, largely attributed to a decrease in cost of equipment and a gain on settlement of certain litigation. The company's net income more than doubled compared to the prior year's third quarter. The company also provided key performance indicators such as ARPU, churn, CPGA, and CPU, noting a slight increase in CPGA and a decrease in CPU. A significant event disclosed is the announcement of a definitive Business Combination Agreement to combine with T-Mobile, expected to close in the first half of 2013.
Financial Highlights
52 data points| Revenue | $4.89B |
| Cost of Revenue | $638.97M |
| Gross Profit | $4.25B |
| SG&A Expenses | $163.41M |
| Operating Expenses | $12.49B |
| Operating Income | -$7.59B |
| Interest Expense | $0 |
| Net Income | -$7.74B |
| EPS (Basic) | $-14.45 |
| EPS (Diluted) | $-14.45 |
| Shares Outstanding (Basic) | 535.29M |
| Shares Outstanding (Diluted) | 535.29M |
Key Highlights
- 1Service revenues declined by 1% year-over-year for the three months ended September 30, 2012, while equipment revenues increased by 85%.
- 2Total revenues increased by 4% to $1.26 billion for the quarter.
- 3Income from operations rose significantly by 65% to $292.2 million.
- 4Net income surged by 178% to $192.7 million.
- 5The company reported a net customer loss of 312,291 for the three months ended September 30, 2012, compared to net additions of 69,384 in the prior year.
- 6Average monthly churn improved to 3.7% from 4.5% year-over-year.
- 7A Business Combination Agreement to combine with T-Mobile was announced on October 3, 2012, expected to close in the first half of 2013.