MetroPCS 3Q profit climbs, helped by settlement

AP News
Posted: Oct 30, 2012 9:28 AM
MetroPCS 3Q profit climbs, helped by settlement

DALLAS (AP) — Cellphone company MetroPCS Communications Inc. said Tuesday its net income more than doubled in the third quarter on a gain from a securities settlement and lower costs.

In early October MetroPCS, a low-cost carrier, agreed to combine with the larger T-Mobile USA. Even combined, they will remain far behind Sprint Nextel Corp., the third-biggest wireless company.

The company has lost about 312,000 subscribers over the last year and had almost 9 million subscribers at the end of the July-September quarter, down 2 percent from a year ago. However it said "churn," or the percentage of customers who left, decreased to 3.7 percent from 4.5 percent a year ago.

In the July-September quarter, MetroPCS profit came to $192.7 million, or 52 cents per share, from $69.3 million, or 19 cents per share. Its results in the latest quarter included a $53 million gain on a settlement related to securities. In the third quarter of 2011 MetroPCS reported greater costs because it spent more money on new phones.

The Dallas company said it earned 38 cents per share if the one-time gain is excluded from its results. Its revenue rose 4 percent, to $1.26 billion from $1.21 billion.