Now is a good time to be offering a deal: Cheap, all-you-can-eat wireless provider MetroPCS (PCS) blew away Wall Street’s growth forecast in the first quarter.
The company said today that it signed up 684,000 net new subscribers in Q1, up 59% year-over-year. That’s also 25% above consensus, according to a note by Goldman Sachs analyst Scott Malat. (MetroPCS got a hand by opening up in new markets, including New York, where it didn’t do business this time last year.)
One troubling stat: Churn, the per cent of subscribers that quit the service each month, ticked up to 5%, up from 4% a year ago. Part of the problem is that MetroPCS has just been growing very fast. But it doesn’t help that MetroPCS tends to attract lower-end customers, who are more likely to flake out.