MetroPCS beats earnings targets with lower subscriber churn
SAN FRANCISCO (MarketWatch) — MetroPCS Communications Inc. reported a strong gain in earnings for the third quarter on Tuesday, with results beating Wall Street’s expectations despite a decline in net subscribers for the company’s prepaid wireless services. Net income for the quarter ended Sept. 30 was $193 million, or 52 cents a share, compared with net income of $69 million, or 19 cents a share, for the same period the previous year. Adjusted for a $53 million gain from a securities settlement, net income was $140 million, or 38 cents per share. Total revenue grew 4% to $1.26 billion. Analysts were expecting earnings of 26 cents a share on revenue of $1.25 billion, according to consensus forecasts from Thomson Reuters. Net subscriber additions fell nearly 313,000, while monthly churn fell to 3.7% from 4.5% in the same period last year. The company maintained its full-year outlook. MetroPCS is in the process of merging with T-Mobile USA, a unit of Deutsche Telekom.