Leap 1Q results show financial improvement, customer growth

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After nearly a year of financial turmoil, Leap Wireless International Inc. reported post-reorganization first-quarter financial results highlighted by an improved financial position and customer growth.

Total revenues increased more than 12 percent year over year from $183.8 million to $206.8 million, bolstered by increases in both service and equipment revenues. Net losses also improved from a loss of $133.5 million during the first quarter of 2003, a loss of $2.28 per share, to $28 million this year, a loss of 48 cents per share.

Net customer additions increased from 1,357 subscribers during the first quarter of 2003 to 65,691 subscribers this year, helped by both an increase in gross customer additions and a drop in customer churn from 4.1 percent last year to 3.1 percent this year. Leap added that it ended the first quarter with 1.5 million total customers.

Financial metrics also improved as average revenue per user jumped from $35.12 during the first quarter of 2003 to $37.45 this year, while the cost per gross addition fell from $177 to $124 and cash cost per user from $23.76 to $20.08 year over year.

“Throughout the company’s restructuring process, we have maintained a disciplined focus on improving our financial performance while remaining committed to strengthening our business through the development of new products and services,” said Doug Hutcheson, executive vice president and chief financial officer of Leap.

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