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Virgin Mobile loses 111,273 customers in Q2
The struggling U.S. economy continues to plague Virgin Mobile USA. The prepaid MVNO lost 111,273 customers in the second quarter for a total customer base of 4.99 million, that's down from 5.1 million at the end of first quarter. The company's net income was also down. In the second quarter it earned $3.5 million, down from $7.1 million in the same period in the previous year. Revenue was down to $317.4 million from 327.6 million. Here are the other key metrics:
CPGA: Cost per gross add was $113.38 up from $100.03 in second quarter 2007. The higher CPGA was related to more marketing and distribution costs. Specifically, Virgin said it had higher retail commissions due to the popularity of the Wild Card handset and the Slash phone.
ARPU: Average revenue per user was $19.32, down from $20.97 in second quarter 2007. The company expects ARPU to improve in the second half of the year as more high-value hybrid customers join the ranks and adoption of the company's "Totally Unlimited" plan for $79.99 increases. Anecdotally, Virgin Mobile CEO Dan Schulman said the Totally Unlimited plan was drawing more interest than expected from customers.
Churn: Churn for the quarter was 5.6 percent, below company estimates and better than the 5.7 percent churn in second quarter 2007.
For more:
- see this press release
Related articles:
Virgin Mobile USA confirms Helio acquisition
Virgin Mobile USA: Poor earnings economy's fault
Comments
Posted by Anonymous | August 20, 2008 - 4:11pm
I've been ripped off two months in a row by virgin mobile...I'm a single parent and cannot afford to pay double every month for virgin mobile mistakes
Posted by Anonymous | January 4, 2009 - 3:54pm
Customer services has repeatedly demonstrated it is not a priority. When I called in about a virgin mobile mistake from a supplier- I got the run around. When I asked to speak to a supervisor the operator hung-up and denied me the opportunity to speak to a supervisor. Virgin mobile might really become a virgin with my service, and I will not recommend this service to even my worst friends or enemies. They continue to lose customers and money....it's your business. I called back and was finally given a supervisor. It was amazing that when quoted that the company lost 111 thousand customers the 2nd quarter,and 14.7 million dollars the 4th quarter in 2008, and that I was going to make comments on the site, how quickly a supervisor could fix the problem. I was told how good their customer satisfaction was. I asked how they could boast customer satisfaction, when they had lost so many customers. I will not recommend anyone to purchase Virgin Mobile phones
Posted by Zdenek | May 10, 2009 - 11:13am
yes, customer services even Virgin Mobile Canada are poor=USED CARS DEALERS STYLE. From Dec19/2009 not credited from Top Up $15 + $49, not responding for 2months, again they asked for another TOP UP by $15 :
TO DO CORRECTION on my balance. Now after 2weeks there is a negative response from Virgin Mobile Canada
So they collected $ 79 without providing any service!
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