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Nov. 7, 2008

The number of overall subscribers and revenue were higher for Leap Wireless, but its losses continued to increase this quarter over the the comparable 2007 quarter.

The mobile services operator lost $48.8 million compared with only $43.3 million last year.

Wireless service revenues increased 23.1 percent to $435 million over the year-ago quarter.

But average revenue per user (ARPU) declined 3.52 percent from a year ago, settling at $42.95.

Additionally, Leap reported an average "customer churn rate" for the quarter at 4.3 percent, down from the 5.3 percent in 2007.

On a more positive note, Leap Wireless added about 156,000 net new customers in Q3 2008.

The majority of those customer additions (92,000) came for voice services in new markets the company launched in 2008.

Also, Leap signed up another 24,000 new customers in existing markets and about 40,000 associated with mobile broadband service.

Doug Hutcheson, Leap’s president and CEO cited deeper penetration in existing markets and mobile broadband service as helping with the performance gains.

“Our overall success in operating and further expanding our business, together with our strong liquidity position and commitment to operate our wireless service business in a thoughtful and disciplined manner, give us confidence that we can continue to move successfully through uncertain economic times,” Hutcheson said.

But he was also quick to point out that he is worried about the current global economic uncertainty of the past 6 to 7 weeks, and he is hopeful the situation will improve soon, both nationally as well as abroad.

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Source: Leap Wireless.