Virgin Mobile USA revenues up in Q1 2009
By Will Park on Monday, May 11th, 2009 at 2:25 PM PST In Announcements, Virgin Mobile
Virgin Mobile USA (NYSE: VM)’s newly-launched hybrid pre-paid calling plans have done well for the wireless company. Virgin Mobile USA has just announced a market-beating Q1 2009 that saw revenues more than doubling last year’s Q1 figures. The wireless carrier posted quarterly revenue of $13.5 million, up from $4.8 million in last year’s first quarter. Unfortunately, Virgin Mobile USA saw a net 166,000 subscribers jumping ship for greener pastures on other pre-paid carriers’ networks.
Virgin Mobile USA recently launched its $50 unlimited calling plans to compete with the likes of Cricket, Boost Mobile and MetroPCS (NYSE: PCS). But, Virgin Mobile USA attributes most of its successful first quarter to its new hybrid plans, which offer post-paid calling plan features and combines them with contract-free flexibility. The company’s CEO, Dan Schulma, attributed 55% of gross subscriber additions to these popular “hybrid” plans.
Virgin Mobile USA expects a more rosy outlook from the rest of the year, and will be investing more heavily in their hybrid calling plan options in a bid to attract more customers.
