MetroPCS tops 1Q profit forecast with growing customer base, but misses on sales

MetroPCS 1Q profit rises, tops forecast

DALLAS — Wireless carrier MetroPCS Communications Inc. said Thursday its first-quarter profit jumped 11 percent, helped by a growing subscriber base as it expanded into the New York City and Boston areas.

But revenue fell below Wall Street expectations, sending shares down $1.73, or 9.4 percent, to $16.71 in afternoon trading.

The company, which offers discount prepaid calling plans, said it earned $44 million, or 12 cents per share, in the three months ended March 31, up from $39.5 million, or 11 cents per share, in the year-earlier quarter. Analysts, on average, expected earnings of 9 cents, according to a Thomson Reuters poll of analysts. The estimates typically exclude one-time items.

Revenue climbed 20 percent to $795 million from $662.4 million a year ago, but did not match the average analyst estimate of $818 million.

MetroPCS said it added nearly 684,000 customers, up from additions of roughly 452,000 a year ago. The company also reported a 5 percent “churn,” or customer turnover rate, up from 4 percent in the year-ago quarter.

Average revenue generated per customer fell to $40.40 from $42.51.