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Earnings: Q3 Financial Highlights From Alltel, U.S. Cellular, MetroPCS And Leap Wireless

Four of the smaller U.S. carriers—Alltel (NYSE: AT), U.S. Cellular, MetroPCS and Leap Wireless, reported third-quarter earnings this week. Here’s a highlights from the financial performances:

Alltel: The Little Rock, Arkansas-based company reported a net loss of $55.2 million on revenues of $2.5 billion. The loss was due to the costs of going private a year ago. Overall, the company added 335,152 customers during the quarter that saw churn drop to 2.02 percent. Average revenue per user came in at $55.62 while data ARPU jumped 42 percent from a year ago to $8.99. The quarter may be the last it reports after the FCC approved its merger with Verizon Wireless (NYSE: VZ) yesterday. Release.

U.S. Cellular: The nation’s sixth-largest carrier reported a net income of almost $90 million, which grew 41.5 percent from a year ago, on revenues of $1.01 billion. The company lost 18,000 subscribers overall during the quarter – its first decline in customer counts in more than a year – ending on a total of 6,176,000. Churn was up at 1.6 percent while ARPU was up 3.5 percent to $54.59. Data revenues also climbed 34.5 percent to $130.2 million overall. Yet, data only comprises about 13 percent of the carrier’s service revenues. Release.

MetroPCS: The company, which touts unlimited wireless service for a flat-rate and no contract, reported a net income of $45 million on revenues of $611 million. ARPU took a nosedive, falling more than 17 percent from a year ago to $40.42. Meanwhile, the carrier added 249,265 customers during the quarter for a total of 4,847,314. Finally, churn was down slightly from last year’s 4.8 percent. Release.

Leap Wireless: The company, which targets a youth-oriented and diverse customer base in 29 states, reported revenues of $496.7 million. In Q3, the company’s net loss widened by 12.7 percent to $48.8 million, but improved churn over the last year, falling a percentage to 4.2 percent. Leap added 155,779 customers for a total of 3,460,140. ARPU slid 3.5 percent to $42.95. Release.

Nov 5, 2008 8:03 PM ET

Posted In: Money, Earnings, Companies, Alltel, leap wireless, metropcs, u.s. cellular

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