TracFone notches weaker organic subscriber growth in Q1, absent Page Plus deal

América Móvil's U.S. TracFone unit banked on its acquisition of 1.4 million subscribers from Page Plus Cellular in the first quarter for the vast majority of its customer growth. Absent the deal, TracFone added 452,000 customers organically in the quarter, weaker than in the year-ago period.

TracFone ended the first quarter with 25.511 million total wireless customers, up from the 23.659 million it had at the end of the fourth quarter, a gain of 1.85 million in total, including the Page Plus deal. In the year-ago period TracFone added 839,000 subscribers. On Jan. 16 TracFone completed its acquisition of substantially all of the assets of Start Wireless Group, which operated Page Plus, a Verizon Wireless (NYSE: VZ) MVNO.

TracFone is by far the largest U.S. MVNO, and offers wireless service through several brands including TracFone, Straight Talk, Telcel America, Net10 and SafeLink. The company's Straight Talk brand is heavily promoted at Walmart.

As Phone News recently pointed out, TracFone's Straight Talk service just increased the monthly data allotment for its plans to 3 GB before speeds are throttled, up from 2.5 GB. That means that regardless which carrier powers the SIM card or device, subscribers now get 3 GB of high-speed data every month. AT&T Mobility (NYSE: T), Sprint (NYSE: S) and T-Mobile US (NYSE:TMUS) power TracFone's services in addition to Verizon.

In terms of TracFone's quarterly metrics, total revenue clocked in at $1.66 billion dollars, up 9.6 percent year-over-year, with service revenues growing 14.2 percent to $1.46 billion. TracFone said data revenues grew 23.4 percent, which contributed to a 3.5 percent increase in average revenue per user, up to $19. Churn was relatively flat at 3.8 percent.

For more:
- see this release (PDF)

Special Report: Wireless in the first quarter of 2014

Related Articles:
TracFone surges ahead with 616,000 net adds in Q4, but falls short of year-ago growth
Poor Americans more likely to live in mobile-only homes, survey says
TracFone adds just 5,000 subs in Q3 as subscriber growth grinds to a halt
TracFone, Icon and others face fines in FCC Lifeline crackdown
TracFone clarifies throttling limits for Straight Talk, Net10 brands
TracFone's Q1: 839K net adds, rising revenues and increasing ARPU

Sponsored by ADI

What if we were always connected? With the help of our advanced wireless technology, even people in the most remote places could always be in touch.

What if there were no ocean, desert, mountain or event that could ever keep us from telling our stories, sharing discoveries or asking for help? ADI’s next-gen communications technology could keep all of us connected.

Suggested Articles

Dish Network inked four fiber deals for backhaul and fronthaul to support its new nationwide 5G network.

FCC Chairman Ajit Pai announced he plans to leave the FCC on Inauguration Day, January 20, 2021.

AT&T has shifted its Cricket prepaid brand to a 100% authorized retailer model, according to Wave7 Research.