San Diego Business Journal

Leap Wireless Posts Quarterly Revenue of $774M

By Mike Allen Thursday, April 26, 2012

Leap Wireless International Inc., the San Diego-based flat-rate cell phone service marketed under the Cricket brand, reported higher revenue and total customers, but higher net losses as well in its first quarter compared with the same quarter of last year, the company said April 25.

Revenue in the quarter was $774 million, up 14 percent from last year’s first quarter.

Total customers as of March 31 were 6.2 million, up 5.9 percent from the same quarter of 2011. Net customer additions were 258,000, down from 330,574 in the like quarter of last year.

Leap said its net loss was $98 million, compared with a net loss of $96 million in the like quarter of 2011.

On an operating basis, the loss was $15.8 million compared with $18 million for the same quarter in 2011.

Leap CEO Doug Hutcheson said the financial and operational results demonstrate the strength of the business and confirm that its strategy continues to deliver.

Leap said the average revenue per user in the quarter was $42.59, up $3.24 or 8 percent over the comparable quarter of the prior year.

Leap said it plans to spend $600 million to $650 million on capital expenditures this year, mainly for ongoing maintenance and to deploy next generation wireless technology.