Cricket Loses $16.1M in Q3

Leap reports third quarter results

October 31, 2011

2 Min Read

SAN DIEGO -- Leap Wireless International, Inc. (NASDAQ: LEAP), a leading provider of innovative and value-driven wireless communications services, today reported operational and financial results for the quarter ended September 30, 2011. Service revenues for the third quarter of 2011 increased 19.4 percent over the prior year quarter to $717.3 million. The Company reported $154.3 million of adjusted operating income before depreciation and amortization (OIBDA) for the third quarter, a 25.2 percent increase over the third quarter of 2010. Third quarter 2011 operating loss was $16.1 million compared to an operating loss of $478.1 million for the third quarter of 2010 (which included an impairment charge of $477.3 million related to goodwill and other assets). Net loss for the third quarter of 2011 was $68.8 million, or $0.90 per diluted share.

The Company reported approximately 666,000 gross customer additions for the quarter. The Company also reported a net gain of approximately 73,000 voice customers and a net loss of approximately 64,000 broadband customers, resulting in a net gain of approximately 10,000 customers, compared to a net loss of approximately 200,000 customers in the third quarter of 2010. Churn for the quarter was 3.8 percent, down from 5.5 percent for the third quarter of 2010. Third quarter voice churn was 3.4 percent, down from 5.2 percent for the third quarter of 2010.

"Our third quarter results reflect the benefits of the devices, service plans and nationwide 3G voice and data network coverage that we have introduced," said Doug Hutcheson, Leap's president and chief executive officer. "Our voice net additions improved by more than 245,000 customers year-over-year, reflecting continued improvements in gross customer additions and voice churn of 3.4 percent, a 180 basis point improvement year-over-year. In addition, ARPU increased to $41.25, reflecting the adoption of smartphones and Muve Music™ devices and related service plans by a third of our voice customers. We continue to pursue initiatives to build on this customer growth, including efforts to increase our distribution presence, enhance our already-compelling device line-up, improve customer awareness through a new nationwide marketing campaign and expand awareness and distribution of our successful Muve Music offering. We are pleased with our progress and believe we have attractive service plans and devices as we move into our stronger selling seasons."

Leap Wireless International Inc. (Nasdaq: LEAP)

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