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Wireless

Tracfone revenues climb 43.3% in Q1

Tuesday 3 May 2011 | 12:51 CET | News
US MVNO Tracfone, a unit of America Movil, added 780,000 new subscribers in the first quarter, to finish March with 18.5 million clients, an increase of 19.9 percent in the period. Quarterly revenues came in at USD 868 million, up 43.3 percent from a year earlier. ARPU expanded by 27.8 percent to USD 14. MOUs jumped by 131 percent year-on-year to 354 minutes per subscriber, resulting from the change in the mix of the operator's subscriber base as StraighTalk continues to gain share among its commercial offerings, the company said. EBITDA for the period was USD 63 million, down from USD 77

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Categories: Mobile & Wireless
Companies: America Movil
Countries: United States
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Comments

@Senetti Interesting and viable angle to observe from. However, EBITDA was down...only up before subscriber acquisition costs. My take on it is that the StraighTalk plans represent a higher volume, but with lower margins. Thus, there would be an increase in revenues but a lower margin than that made on the other commercial offerings. Either way, I do agree with you that StraightTalk's $45 plans, coupled with smartphones, must be placing added strain on AT&T's network. I also think this combination is what's helping Tracfone's numbers to a large extent, in a country where the demand is predominantly texting and data usage.
Patty Usher @ 5/5/2011 - 00:47

Revenues up, but EBITDA up too...on the back of the disappearance of all the smart phones on the shelves of walmart, and online?! I'm going to take a rough guess and say AT&T have drawn a line to the amount of consumption tracfone's customers are entitled to. The $45 unlimited plan, along with smart phones must have made at least a little dent in AT&T's already troubled network. You see the EBITDA go down after the potential ATTTM merger.
Senetti Falconer @ 4/5/2011 - 19:24


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