América Móvil's U.S. MVNO, TracFone, reported a gain of 1.2 million net new customers in the second quarter, but almost all of that growth came from the company's May acquisition of former T-Mobile USA MVNO Simple Mobile.
During the quarter, TracFone said 1.1 million of its total net additions came from the Simple Mobile deal, which was announced May 10. The deal closed June 19, and TracFone said it would keep the Simple Mobile brand and its SIM-only offerings. Discounting the Simple Mobile deal, TracFone's subscriber growth slowed down. The company had 236,000 net subscriber additions in the year-ago period, and had 369,000 net subscriber additions in the first quarter.
Financially, TracFone--which operates the Straight Talk and Net10 brands--did quite well in the quarter. The company reported total revenue of $1.1 billion, up 18.2 percent from $919 million in the year-ago period. Equipment revenue climbed 2.6 percent year-over-year, likely an indication of higher smartphone sales.
TracFone said average revenue per users jumped to $16 from $15 a year ago, and that average minutes of use per subscriber climbed 10.5 percent year-over-year to 412. Churn decreased to 4.1 percent from 4.3 percent in the year-ago quarter.
For more:
- see this release (PDF)
- see this Reuters article
- see this Dow Jones Newswires article (sub. req.)
Special Report: Wireless in the second quarter of 2012
Related Articles:
América Móvil's TracFone acquires T-Mobile MVNO Simple Mobile
TracFone MVNO sees subscriber growth slow to 369K in Q1
TracFone MVNO Straight Talk nets 493K subs in Q4