MetroPCS expands in Michigan, looks to future rollouts

MetroPCS Communications Inc. posted its full, third-quarter earnings report, along with news that it is now up and running in new Michigan markets. The carrier, which previously announced that it added 249,000 customers during the third quarter, launched service in Flint, Lansing, Saginaw and Bay City, Mich., today.
MetroPCS said it will open two new company stores, one in Flint and the other in Lansing, but will also be present in 89 dealer locations throughout the state.
“MetroPCS’ entry into the markets will provide a positive stimulus for the local economy by creating 20 jobs in the Flint, Lansing, Saginaw and Bay City areas,” the company said. MetroPCS also offers service in the Detroit area.
The carrier also released its full, third-quarter results; it released limited results in early October.
The regional, flat-rate carrier recorded net income of $45 million in the quarter, down from the $53 million it scored in the year-ago quarter. MetroPCS reported consolidated total revenues of $687 million, an increase of 23% over the third quarter of 2007.
The carrier’s stock was up slightly to around $14.85 per share after the news.
MetroPCS now counts just over 5 million customers. The carrier’s average revenue per user, hit $40.42, a decrease of $2.35 compared with the third quarter of 2007. The carrier attributed this fall to customers enrolling in family plans as well as reduced revenue from features now included in service plans that were previously sold a la carte.
The carrier said it expects to add 1.4 million to 1.7 million new customers by the end of next year, and is also planning to continue its service expansion. MetroPCS said it will focus on building out its network during 2009 and 2010 in hopes to eventually cover 40 million potential subscribers.
Next up is Boston and New York; the carrier will launch in the two cities in early 2009.The move is similar to competitor Leap Wireless International Inc., which is busy trying to double its covered pops by 2010.