MetroPCS (PCS) added fiscal details to its previously announced customer results for the fourth quarter of 2011, showing positive trends and a sharp increase in net income.
For the fourth quarter, MetroPCS posted a 16% increase in revenues from $1.066 billion in 2010 to $1.238 billion in 2011. For the full year, revenues surged 19% to $4.847 billion in 2011.
Bolstering that growth was an increase in its total customer base, though quarterly growth was down year-over-year, and increase customer spending. MetroPCS noted that it ended 2011 with more than 9.346 million customers compared with 8.155 million at the end of 2010, with average revenue per user during the fourth quarter increasing 76 cents to $40.55 in 2011.
Operating expenses also increased year-over-year during the fourth quarter from $858 million in 2010 to $1.023 billion in 2011, while full-year expenses surged from $3.35 billion in 2010 to nearly $4.1 billion in 2011. Those increases were tied to greater costs associated with the carrier’s cost per gross customer addition and cash cost per user.
Net income surged 573% during the fourth quarter from $14 million in 2010, a return of 4 cents per share, to $91 million last year, or a return of 25 cents per share. For the full year, net income increased 56% from $193 million in 2010, a return of 54 cents per share, to $301 million in 2011, or a return of 82 cents per share.
MetroPCS said it expects to spend up to $1 billion in 2012 on capital expenditures, which was in line with estimates. Analysts said they expect the carrier to focus its efforts on increasing margins in 2012 as well as trying to solidify a spectrum issue that sees the carrier short on assets to support its LTE network.
MetroPCS’ stock was trading up more than 13% in early trading on the news.
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