One, of many, interesting points to come out of today’s financial results from América Móvil was the continued success seen by its U.S.-based Tracfone Wireless operations that continued to make strides in gaining prepaid customers
América Móvil noted that Tracfone managed to add 753,000 net customers during the final three months of 2012 – a 53% increase over the fourth quarter of 2011 – and added more than 2.6 million customers for the full year. Helping to bolster growth was a dip in customer churn from 4.1% during the fourth quarter of 2011 to 3.9% in 2012.
Tracfone ended 2012 with nearly 22.4 million customers, which places the carrier as a solid No. 5 in total customers served across the United States, just behind nationwide providers Verizon Wireless, AT&T Mobility, Sprint Nextel and T-Mobile USA. All of Tracfone’s subscribers are supported through the company’s reseller operations that run across a number of domestic wireless operators. In addition to its own Tracfone branded service, the company operates the Net10, Straight Talk and SafeLink brands, and recently unveiled its Telcel America brand targeting the Hispanic community.
Some of Tracfone’s 2012 growth was also attributed to its acquisition of Simple Mobile during the summer, which added approximately 1 million new customers into the fold. Analysts noted that deal likely cost the company around $200 million.
Along with the strong customer growth, Tracfone managed to grow its average revenue per user from $16 per month during the fourth quarter of 2011 to $18 in 2012, with minutes of use surging more than 28% to 508 minutes per month per user. That ARPU growth along with the growing customer base helped push Tracfone’s total revenues up more than 30% year-over-year to $1.355 billion for the quarter, though growing smartphone sales hit earnings before interest, taxes, depreciation and amortization, which dropped nearly 50% to $39 million.
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