pre-paid-metropcs

The rollout of LTE for MetroPCS is paying off in the form of cold, hard cash for the fifth place cellular company.

While MetroPCS considers a potential buyout from T-Mobile, it’s a bit clearer now why the shareholders would be hesitant to agree to the deal. The fifth place cellular carrier in the U.S. released its fourth quarter financial report this week and reported revenues of $1.3 billion. While it was a modest four percent increase over the same time period in 2011, profits were up by nearly 10 percent to $824 million which certainly puts the proposed T-Mobile deal in a very different light than we had before.

The biggest increase for the carrier was in its LTE division. The number of subscribers to the 4G service surpassed 2.2 million which represented an increase of 117 percent from the third quarter.

Seeing as T-Mobile is planning to offer shareholders $1.5 billion as a cash payout, these numbers certainly let you in to why the hedge funds with the largest percentage shares of the company are recommending everyone vote against the merger next month.

MetroPCS Reports Fourth Quarter and Year End 2012 Results

DALLAS, Feb. 26, 2013 /PRNewswire/ –

Fourth Quarter 2012 Highlights Include:

  • Quarterly consolidated total revenues of approximately $1.3 billion, an increase of 4% over the fourth quarter of 2011
  • Quarterly ARPU of $40.86, an increase of $0.31 over fourth quarter 2011
  • Quarterly churn of 3.6%, a decrease of 10 basis points from the third quarter of 2012 and from the fourth quarter of 2011
  • Adjusted EBITDA of $307 million and Adjusted EBITDA margin of 27.9%
  • Surpassed 2.2 million 4G LTE subscribers, an increase of 117% from the third quarter of 2012
  • Consolidated net subscriber losses of 93 thousand

Full Year 2012 Highlights Include:

  • Consolidated total revenues of approximately $5.1 billion, an increase of 5% over 2011
  • Income from operations of $824 million, an increase of 10% over 2011
  • Record Adjusted EBITDA of over $1.5 billion, an increase of 14% over 2011, and the highest Adjusted EBITDA in Company history
  • Adjusted EBITDA margin of 33.3%, an increase of 320 basis points over 2011
  • ARPU of $40.63, an increase of $0.06 over 2011
  • Annual churn of 3.4%, a decrease of 40 basis points over 2011, and the lowest annual churn in Company history
  • 4G LTE subscribers represent approximately 26% of total subscribers
  • Serve approximately 8.9 million subscribers

MetroPCS Communications, Inc. (NYSE: PCS), the nation’s leading provider of no annual contract, unlimited, flat-rate wireless communications service, today announced financial and operational results for the quarter and year ended December 31, 2012.  MetroPCS reported record Adjusted EBITDA of over $1.5 billion, an increase of 14% over 2011 and ended 2012 with approximately 8.9 million subscribers.

Roger D. Linquist, Chairman and Chief Executive Officer of MetroPCS, said, “The fourth quarter continues our transformation as a company to 4G LTE For All. We ended 2012 with over 2.2 million 4G LTE subscribers, double from where they were at the end of the third quarter of this year. 4G LTE subscribers at the end of 2012 represented 26% of our total subscriber base. 4G LTE high-speed wireless broadband enables an evolution in the wireless experience and we believe our subscribers benefit from the faster speeds and increased capacity. During the quarter, over 75% of upgrades moved to a 4G LTE service plan. Our 4G LTE network is performing well, and we believe it is meeting our customers’ current demands for high-speed wireless broadband service. Importantly, we have also introduced RCS on our LTE network which offers a competitive differentiator to 3G data offerings.  We plan to continue our push towards 4G LTE and transform the wireless experience for MetroPCS subscribers.

“The proposed business combination with T-Mobile is progressing well. We filed our definitive proxy on February 25, 2013 and our shareholder meeting is scheduled for March 28, 2013. Currently, we anticipate closing the transaction in early April. Post-closing, the combined company will be the leading value wireless carrier in the United States, which will deliver an enhanced customer experience through a broader selection of affordable products and services, more network capacity and broader network coverage and a clear-cut technology path to one common 4G LTE. We believe that the combined company will have the expanded scale, spectrum and financial resources to compete aggressively with the other larger U.S. wireless carriers,” Linquist concluded.

2012 Operational Highlights

  • Surpassed 2.2 million 4G LTE subscribers, representing a dramatic increase from 310 thousand 4G LTE subscribers at December 31, 2011
  • Record Adjusted EBITDA of over $1.5 billion, an increase of 14% over 2011, and the highest Adjusted EBITDA in Company history
  • Adjusted EBITDA margin of 33.3%, an increase of 320 basis points over 2011
  • Annual churn of 3.4%, a decrease of 40 basis points over 2011, and the lowest annual churn in Company history
  • Announced proposed business combination with T-Mobile USA to create the leading value wireless carrier in the U.S.
  • Successfully completed consent solicitation to amend indentures governing 7 7/8% Senior Notes due 2018 and 6 5/8% Senior Notes due 2020
  • Launched 4G LTE For All campaign which transformed the wireless experience for no-contract offerings
  • 2012 Smartphone Launches include:
    • ZTE Avid™ 4G LTE
    • Samsung Galaxy S III 4G LTE
    • Coolpad Quattro™ 4G LTE
    • LG Motion™ 4G LTE
    • LG Connect 4G LTE Android™; world’s first commercially available VoLTE-capable 4G LTE smartphone
    • Huawei Activa™ 4G LTE; Huawei’s first 4G LTE handset in the United States
  • 2012 Service Offering Additions:
    • First 4G LTE mobile service provider in the world to deploy Rich Communication Services (RCS) which provides customers with enriched services, such as instant messaging, Wi-Fi, video calling, and simplified sharing
    • Launched world’s first commercially available Voice Over LTE (VoLTE) service
  • 2012 Announced Partnerships:
    • Launched Team Metro with UFC® Fighters Cain Velasquez and Frankie Edgar
    • Partner with After-School All-Stars for programs helping at-risk youth
    • Deron Williams, USA Basketball National Team Member, becomes official spokesperson for MetroPCS
    • Announced USA Basketball Dream Tour which stopped in 15 cities across the nation

Mobile Content Venture (MCV) partnership to enable MetroPCS customers to watch live, local broadcast television on their mobile phones.