not such a great report
Leap 2Q Loss Narrows On Higher Per-User Revenue; Shares Off
3 minutes ago - Dow Jones News
By Kristin Jones
Leap Wireless International Inc.'s (LEAP) second-quarter loss narrowed as the pay-as-you-go mobile operator took in more revenue per user.
Results fell short of Street expectations, as the company lost customers during the quarter. Shares fell 12% in after-hours trading to $4.84. Through the close, the stock was down 41% so far this year.
Leap has reported growing revenue in recent quarters. But the company hasn't posted a quarterly profit since 2007, after its lower-income customer base was hit particularly hard by the recession.
The operator of the Cricket Wireless prepaid service has looked to attract higher-income customers by selling smartphones. In June, the company said it would start selling the iPhone on its Cricket network, hoping to drive subscriber growth and retain existing customers. In the latest quarter, 57% of new handset sales were for smartphones.
Leap posted a loss of $41.6 million, or 54 cents a share, compared with a year-ago loss of $65.2 million, or 85 cents a share.
Revenue rose 3.5% to $786.8 million.
Analysts polled by Thomson Reuters recently expected a loss of 50 cents a share, with revenue of $836 million.
The company lost a net 289,000 customers in the latest quarter, mostly consisting of voice customers, compared with a net loss of 103,000 customers a year ago. It ended the period with a total of 5.9 million customers, up 2.7% from a year earlier. Churn, a gauge of customer turnover, edged higher to 4.4% from 4.2%.
Average revenue per user was up 3.7% at $41.64.