MetroPCS, which is in the process of being acquired by T-Mobile USA, released limited fourth quarter results today showing continued struggles in attracting new subscribers to its flat-rate, no-contract unlimited offerings. The announcement sent the company’s stock tumbling.
The carrier said it lost 93,200 customers during the quarter, driven by lower than expected gross customer additions that offset slightly improved churn results. Gross customer additions sagged29% year-over-year to approximately 866,000 subscribers during the quarter, while customer churn managed to improve one basis point to 3.6%. The news sent MetroPCS’ stock (PCS) down 2% in early Monday trading to $9.54 per share.
The Q4 2012 results were down significantly from the 197,410 customers the carrier added during the fourth quarter of 2011, a result that also initially sent the carrier’s stock plunging.
Analysts noted that MetroPCS’ rough fourth quarter show increased competitive pressure in the prepaid and no contract space as rivals have increased focus on the segment. The news could also spell trouble for Leap Wireless, which has a similar business model to MetroPCS. Leap’s stock (LEAP) was trading down just over 1% early Monday.
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