Virgin Mobile USA (VM) reported quarterly results for the first time as a public company. Overall: not great. Release
- Revenue: $301.4 million, up 25% year-over-year, but missed $318.5 million Street consensus
- Net loss widened to $7.3 million, from $5.1 million a year ago
- Gross subscriber additions: 760,000, up 14% y/y
- Net subscriber additions down almost 50% y/y, from 88,000 3Q06 to 46,000 3Q07
- Churn flat at 4.9%. Still not a good sign that they are signing up 760,000 people (gross adds) to their service in Q3 and losing 714,000 (gross adds minus net adds).
- ARPU up slightly to $20.59
- Customer acquisition costs flat at $127
- Ended quarter with 4,876,217 subs, compared to 3,960,338 last year.
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