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Thursday
Mar082012
DateThursday, March 8, 2012 at 12:28PM

MetroPCS Tops OIBDA Margin for Public Wireless Companies

4 out of 5 Companies Report Margin Improvement

The median trailing twelve month OIBDA margin seems to be rebounding from its 1Q11 low, ending at 19.39% during 3Q11. In fact, during the trailing twelve months ended 3Q11, MetroPCS was the only company in our sample to report a lower OIBDA margin than in the trailing twelve months ending 2Q11. Still, MetroPCS has reported the highest OIBDA margin of the companies in our sample on a trailing twelve month basis during every period since 3Q10. The chart below show the OIBDA margins of the wireless companies on a quarterly and trailing twelve month basis.

AuthorMatt Lydon | Comments Off | | | Print ArticlePrint Article
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Monday
Nov222010
DateMonday, November 22, 2010 at 1:05PM

AT&T; Claims Nation's Fastest Mobile Broadband Network 

Source: AT&T Press Release

AT&T (NYSE:T) announced that it has invested nearly $6 billion in wireless-related initiatives over the first three quarters of 2010, a 55 percent increase over the first three quarters of 2009, and that these efforts are resulting in national average mobile broadband speeds that are substantially faster than the competition, with the nearest competitor running 20 percent slower than AT&T on average nationally, and its largest competitor by subscriber count running 60 percent slower than AT&T on average nationally.

AT&T also noted that over 106.9 million WiFi connections were made on its U.S. network in the third quarter, as opposed to the total 85.5 million connections made during the entire year of 2009.

These are the findings from the latest comprehensive, scientifically validated national drive testing conducted by industry expert testing firm Global Wireless Solutions (GWS).  GWS compiles wireless network performance results covering more than 950,000 road miles in more than 400 U.S. markets representing about 88 percent of the U.S. population.

“Data is now the preferred form of mobile communication, and faster mobile broadband speeds make virtually every app more enjoyable and efficient for the user,” said Iain Gillott, president of wireless industry analyst firm iGR.  “As the market continues to develop, wide availability of fast mobile broadband will be increasingly important to mobile subscribers, both consumer and business users alike.”

Assuming a positive regulatory environment, AT&T plans to invest between $18 billion and $19 billion in its wireless and wireline networks in 2010, including a $2 billion increase in wireless-related network investment over 2009 levels.  AT&T is investing to enhance the speed and coverage of its mobile broadband network through the addition of hundreds of new cell sites; additional layers of wireless capacity in markets across the country; and deployment of HSPA 7.2 and HSPA+ software and fiber-optic backhaul connections to support even faster mobile broadband speeds.

AuthorRyan Elberg | CommentPost a Comment | | | Print ArticlePrint Article
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Wednesday
Nov032010
DateWednesday, November 3, 2010 at 1:57PM

T-Mobile Launches Additional "4G" Markets

Source: T-Mobile USA press release

T-Mobile USA, Inc. announced the expansion of its 4G mobile broadband network to six additional metro areas, and introduced two new 4G products, including the T-Mobile® myTouch® 4G smartphone and T-Mobile’s first 4G netbook, the Dell™ Inspiron™ Mini 10 4G.  Notable in the announcement was T-Mobile’s use of the term “4G” rather than “4G-like.”  T-Mobile is deploying HSPA+ technology, which it claims gets speeds comparable with other 4G technologies like WiMax and LTE.

“4G is about performance and today T-Mobile’s HSPA+ network is delivering 4G speeds that match and often beat WiMAX and are readily comparable to what early LTE will deliver. Our 4G network is capable of theoretical speeds up to 21Mbps and we have seen average download speeds approaching five Mbps on our myTouch 4G phone in some cities, with peak speeds of nearly 12 Mbps.  Further, independent reviewers have seen average download speeds on our webConnect Rocket between 5 and 8 Mbps with peak speeds up to 8-10Mbps,” said Neville Ray, cto, T-Mobile USA.   “The footprint of our 4G service is not something that competitors are going to match anytime soon, and starting today, we will begin marketing our network advantage with TV commercials advertising ‘America’s Largest 4G Network’ from T-Mobile.”

T-Mobile expanded the availability of its 4G network to six additional metropolitan areas, including Chicago, Ill.; Colorado Springs, Colo.; Ft. Wayne, Ind.; Louisville, Ky.; and Raleigh-Durham and Wilmington, N.C. T-Mobile said that the service is now available in 75 markets nationwide.

Additional 4G products already available from T-Mobile include the T-Mobile webConnect® Rocket™ 2.0 laptop stick and the T-Mobile G2™ with Google™ smartphone.  T-Mobile’s 4G smartphones, the myTouch 4G and the T-Mobile G2, are powered by the Android 2.2 operating system.

AuthorRichelle Elberg | CommentPost a Comment | | | Print ArticlePrint Article
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Tuesday
Nov022010
DateTuesday, November 2, 2010 at 5:14AM

3Q10 Earnings: Sprint

Source: Sprint Press Release

Sprint Nextel (NYSE:S,"Sprint") reported 3Q10 earnings on October 27, 2010.  “Driven by record customer satisfaction, and the performance of iconic devices like the EVO and Epic, Sprint’s momentum continued this quarter,” said Dan Hesse, Sprint CEO.  “The Sprint brand gained postpaid customers for the fourth consecutive quarter as, for the second consecutive quarter based on porting data, more customers switched to Sprint from our competitors than switched from Sprint to our competitors.  In addition, our last two quarters have been all-time bests for postpaid churn.  We also saw improvement sequentially in prepaid net adds and our lowest prepaid churn in almost five years.”

Sprint’s multi-brand prepaid strategy continued to roll out during the third quarter as the company’s new Virgin Mobile “Beyond Talk” data-centric plans and Assurance Wireless plans significantly contributed to increased gross additions.  The focus on data and connectivity was also supported by a new $40 unlimited data plan for Virgin’s Broadband2Go product line.  As part of the broader portfolio, Sprint also launched payLo™ by Virgin Mobile, providing value for the customer with basic communications needs with a 400 Minutes for $20/month plan.  And Boost Mobile added another dimension to its unlimited offer with a $2 Daily option.

3Q10 Highlights:

  • Consolidated revenues of $8.2b were 1% higher than 309 revenues.
  • Adjusted OIBDA was $1.3b compared to $1.5b for 3Q09. The decline in adjusted OIBDA was primarily due to higher subsidy costs due to increased volume of handset sales and sales expenses resulting from improvement in retail subscriber gross additions.
  • Capital expenditures were $462m compared to $431m during 3Q09.
  • Free cash flow was $384m compared to $664 for 3Q09.  Free cash flow decreased primarily due to a reduction in net cash provided by operating activities, increased capital expenditures, and proceeds during 3Q09 from the exchange of spectrum.

Wireless Operations:

Connections as of September 30, 2010:

  • Retail wireless service revenues of $6.4b increased by 2%.  The YoY improvement is due to an increased number of prepaid subscribers as a result of the success of the Boost Monthly Unlimited offering, the 4Q09 acquisition of Virgin Mobile, and subsequent brand launches associated with the company’s prepaid multi-brand strategy, partially offset by net losses of postpaid subscribers since 3Q09.
  • Wireless postpaid ARPU of approximately $55 declined YoY from $56. The YoY decline is due to lower overage, casual data and text revenues, offset by higher monthly recurring revenue as a result of the greater popularity of fixed-rate bundle plans.
  • Prepaid ARPU was approximately $28 compared to $35 during 3Q09.  The YoY decline is due to the inclusion of Virgin Mobile and Assurance Wireless customers, who have lower ARPU than that of Boost Mobile customers.
  • Wholesale, affiliate and other revenues were down $86m from 3Q09.  Service revenues in wholesale, affiliate and other revenues declined YoY as revenues from Virgin Mobile and iPCS are now included in wireless retail revenues following the acquisition of those companies during 4Q09. The YoY decline is also due to the loss of two large wholesale customers during 2009.
  • Wireless operating expenses were $7.5b during 3Q10, compared to $7.4b during 3Q09.
  • Wireless equipment subsidy during 3Q10 was almost $1.1b (equipment revenue of $740m less cost of products of $1.81b), compared to approximately $950m during 3Q09.  The YoY increase in subsidy is a combination of improvement in postpaid gross additions, an increase in postpaid handsets sold with a greater mix of smartphones, which on average carry a higher subsidy rate per handset, and an increase in the number of prepaid handsets sold primarily as a result of the acquisition of Virgin Mobile and subsequent brand launches associated with the company’s prepaid multi-brand strategy.
  • Wireless SG&A expenses increased approximately 3% YoY.  SG&A expenses increased primarily due to increased gross additions, a reduction of other variable costs reflected in 3Q09 results, and the increased customer base resulting from the acquisition of Virgin Mobile.
  • Adjusted OIBDA of $1.1b for 3Q10 compares to $1.2b for 3Q09.  The YoY decline in adjusted OIBDA was primarily due to lower postpaid service revenues and higher subsidy costs, partially offset by higher prepaid service revenues.
  • Wireless capital expenditures were $341m for 3Q10 compared to $310m for 3Q09.

Wireline Operations: 

  • 48.8m wireless subscribers.
  • 33.1m postpaid subscribers (26.6m via the Sprint brand on CDMA, 6.1m on iDEN, and 440k Power Source users who utilize both networks).
  • 11.6m prepaid subscribers (7.1m on CDMA and 4.5m on iDEN).
  • 4.1m wholesale and affiliate subscribers, all of whom utilize our CDMA network.
  • Added 644k net wireless customers including 364k retail subscribers and 280k wholesale and affiliate subscribers.
  • Added 276k postpaid customers including net additions of 354k postpaid CDMA subscribers, net losses of 78k Nextel PowerSource customers and net losses of 383k iDen customers.
  • Added a net 471k prepaid subs including net additions of 1.2m prepaid CDMA customers and net losses of 700k prepaid iDEN customers.
  • Postpaid churn was 1.93% during 3Q10, down from 2.17% for 3Q09.
  • Prepaid churn was 5.32% during 3Q10, down from 6.65% for 3Q09.

Guidance:

  • Expecting postpaid, prepaid and total net subscriber counts to increase during 4Q10.
  • Full-year capital expenditures to approximate $2b.
  • Expecting positive free cash flow during the remainder of 2010.
  • 3Q10 wireline revenues of $1.2b, down almost 12% YoY as a result of reduced voice volume and rates for both data and IP services.
  • Wireline operating expenses were $1.1b, down 8% YoY due to declines in costs of service as IP becomes a larger percent of the wireline base and improvements in SG&A expenses.
  • Wireline adjusted OIBDA was $271m compared to $324m for 3Q09.
  • Wireline capital expenditures were $59m during 3Q10 compared to $72m for 3Q09.
AuthorBill King | CommentPost a Comment | | | Print ArticlePrint Article
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Sunday
Oct312010
DateSunday, October 31, 2010 at 8:50AM

3Q10 Earnings: Verizon

Source: Verizon Press Release

Verizon (NYSE:VZ) announced third quarter earnings on October 22, 2010.  "Verizon built on a strong second quarter with a stronger third quarter, resulting in improved earnings performance and substantial cash flow," said Chairman and CEO Ivan Seidenberg. "We are building momentum and are on track to achieve our goal of growing earnings in the second half of the year. We are excited by the opportunities we see to expand wireline margins and the growth we see related to the upcoming launch of next-generation wireless services."  Highlights from reported 3Q10 results include:

Wireless Operations:

  • 93.2m wireless subs, up 997k.  101.1m total wireless connections at the end of 3Q10, including 7.9m machine-to-machine and telematic connections.
  • Retail postpaid churn of 1.07% during 3Q10.
  • Wireless retail service ARPU of $51.99, up 1.8%.
  • Wireless retail data ARPU of $18.61, up 19%.
  • Monthly cash expense per customer decreased to $26.88 for 3Q10, down from $27.59 for 3Q09.
  • During 3Q10, data revenues increased to 35.7% of service revenue, up from 30.5% during 3Q09.
  • Retail service revenues during the quarter totaled $13.5b, up 5.0%.
  • Retail data revenues were $4.8b, up 22.8%.
  • Wireless service revenues during 3Q10 were $14.2b, up 7.7%.
  • Total wireless revenues were $16.3b, up 6.0%.
  • Wireless segment EBITDA margin of 47.2% for 3Q10, up from 45.7% during 3Q09.

Wireline Operations:

  • Wireline ARPU of $86.55, up 10.9%.
  • FiOS ARPU of $146.
  • FiOS network now passes 15.4m premises, or approximately 60% of Verizon's footprint.
  • 3.9m FiOS Internet subscribers, up 226k or 17%.
  • FiOS Internet penetration stands at 31% of 12.5m addressable premises, up from 28.7% of 10.9m addressable premises at the end of 3Q09.
  • 3.3m FiOS TV subscribers, up 204k or 19%.
  • FiOS TV penetration was 27.2% at the end of 3Q10, with the product available for sale to 12.1m premises. This compares with 25.1% and 10.4m, repectively, at the end of 3Q09.
  • Broadband connections totaled 8.3m at the end of 3Q10, up 2.7% YoY.
  • Wireline broadband and video revenues, including FiOS, were $1.8b for 3Q10, up 20.8%.  FiOS revenues grew 29.2% YoY.  FiOS revenues now generate approximately 50% of consumer wireline revenues, up from 40% percent in 3Q09.
  • 3Q10 revenues were $10.3b, a decline of 3.6% from 3Q09.
  • 3Q10 cash operating expenses were $8.1b, down 3.3% from 3Q09.
  • Wireline EBITDA margin was 21.0%, compared to 20.8% during 2Q10 21.2% during 3Q09.

Other Results and Announcements:

  • 3Q10 revenues of $26.5b, down 2.9%.
  • After adjusting for divested operations, 3Q10 operating revenues increased $550m, or 2.1%.
  • YoY comparable revenues grew 0.5% during 2Q10.
  • YTD free cash flow of $13.4b, up 25.3% from 2009.
  • 3Q10 EPS of 31 cents, down from 41 cents for 3Q09.
  • 3Q10 EPS included 19 cents per share loss non-cash recognition of pension settlement losses resulting from the company's workforce reduction and voluntary separation plans; 4 cents per share for charges in connection with the closing of the Frontier transaction; and 2 cents per share for Alltel merger integration costs.
  • Net debt at September 30, 2010 was $47.8b. The net debt to Adjusted EBITDA ratio was approximately 1.4x at the end of 3Q10.
  • Wireline workforce totaled 97,500 at the end of 3Q10, down 5,900 from the end of 2Q10.
  • Total employees at the end of 3Q10 totalled 195,000.
  • During 3Q10, Verizon's Board of Directors approved a 2.6% quarterly dividend increase.

Guidance:

  • 2H10 EPS of $1.06 to $1.11
  • 2010 capital spending from $16.8b to $17.2b
AuthorBill King | CommentPost a Comment | | | Print ArticlePrint Article
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