Jumat, 15 Agustus 2008

WARREN, N.J. - Wireless service provider Virgin Mobile USA Inc. said Wednesday its second-quarter profit dropped sharply as revenue declined and the company lost net subscribers.

Virgin Mobile earned $3.5 million, or 7 cents per share, down 50 percent from $7.1 million, or 14 cents per share, in the same period a year earlier.

Revenue slipped 3 percent to $317.4 million from $327.6 million.

Analysts, on average, were expecting a profit of 2 cents per share on sales of $314.3 million, according to a poll by Thomson Reuters.

The company lost 111,273 net customers during the quarter, up from a loss of 53,424 net subscribers a year earlier. Gross customer additions totaled 728,370 during the quarter.

Churn, or subscriber turnover rate, was 5.6 percent.

The company forecast third-quarter results of a breakeven to a profit of 3 cents per share. Analysts expect a profit of 8 cents per share. It also expects net service revenue to "stabilize and be consistent with the second quarter," in the range of $285 million to $295 million.

Virgin Mobile USA is the U.S. wireless unit of Richard Branson's Virgin Group. It went public at $15 per share last October.

Shares climbed 26 cents, or 9.5 percent, to $3 in after-hours electronic trading. The stock closed unchanged at $2.74.


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