San Diego Business Journal

Leap Wireless International Reports Net Loss of $163M for Q2

Friday, August 2, 2013

Leap Wireless International Inc., which agreed to be acquired by AT&T last month for $15 per share or $1.2 billion, reported second quarter net loss of $163 million, compared with a net loss of $41.6 million for the like period of 2012.

The wireless service sold under the Cricket brand continued to shed customers, reporting a net loss of 364,268 customers, or 18 percent more than it lost for the second quarter of 2012. Total customers at the end of June stood at 4.8 million, down from 5.9 million at the end of the like quarter of 2012.

Leap said the net losses reflected fewer gross additions due to tougher competition in its markets and increased customer demand for 4G services, combined with 57 percent year-over-year rise in its handsets, as well as fewer customers who reactivate their phones.

Total revenue for the quarter declined 7 percent to $731.5 million. For the six months, Leap said its total revenue was $1.6 billion, down 5.6 percent from the year earlier revenue.

At the time the sale was announced, analysts said AT&T was overpaying for Leap mainly because it coveted its spectrum licenses to help it expand its next generation wireless networks.

Shares of Leap, traded under LEAP on Nasdaq, closed at $16.63 on Aug. 1 before the financial results were released. The stock’s 52-week range is $4.28 to $17.51.

— Mike Allen