Business is so far at its best with America’s fifth largest carrier, MetroPCS Communications Inc., formerly known as General Wireless Inc., posting a dramatic increase on this year’s third quarter earnings, along with more than 1 million LTE subscribers acquisition on its network as Q3 ends.
Indicated in the cellular network’s third quarter report is a booming net profit of $193 million on combined revenue of $1.3 billion, which equates to $0.52 a share. It surpasses the analysts’ forecast Q3 revenue of $1.25 billion. The upturn is more than double in the same quarter of last year which amounted to $69 million or $0.19 a share.
The company’s current per-share income is $0.38, including an increase on security settlements. A 4.5 percent increase on revenue is also noted at $1.26 billion.
MetroPCS however has lost 312,291 subscribers across the network in the quarter, leaving a total of 8.9 million active customers as the quarter closed with over 1 million LTE subscribers. The network LTE subscriptions denote about 12 percent of its overall customer base on the high-speed wireless network.
Reverse merger deal with T-Mobile
MetroPCS LTE services emerged from its most recent reverse merger deal with the fourth-largest mobile carrier Deutsche Telekom AG’s US subsidiary, T-Mobile USA. The merger is still subject to shareholder and regulatory approval. With this blending, MetroPCS shareholders are projected to hold a 26 percent stake in the merged company.
The reverse merger agreement will also grant MetroPCS customers access to a wider variety of handsets and services. In return, T-Mobile will acquire MetroPCS’ LTE service, with more varieties and fiscal resources to maintain its edge.
The company launched 4G LTE For All late in the third quarter which delivers impressive initial results, including upgrades and churns (customer turn-overs). With the ever-growing 4G LTE handset roster, the carrier is confident that its LTE service offers an unparalleled cost, with the inclusion of regulatory fees and taxes.
MetroPCS and T-Mobile USA reached the deal on October 3rd, 2012 which is expected to be complete between April and June 2013.
MetroPCS chief executive and Chairman Roger D. Linquist believed they are all set to meet the high-speed wireless broadband service demands these days. Part of their plan in the fourth quarter is to work on reviving subscriber growth, which is likely to put more pressure on its CPU and CPGA.
Besides the 4G LTE network, MetroPCS also ventured on fresh smartphone lineups in a bid to invite new customers that would fill its prior subscription losses.