Virgin Mobile Doesn’t Add Enough, But Gets Paid Anyways
Virgin Mobile, an MVNO using Sprint’s CDMA network, unofficially reported some Q4 2007 numbers, and they’re not looking great. The company went public in October and previously claimed they would add 400,000 in the holiday season. Unfortunately, they only managed to snag a little over 200,000, roughly half. However, their financials improved quite a bit during 2007, with earnings coming in at $100 million, slightly over the $90 million they had expected. Also, net loss was reduced drastically, from $36.7 million in 2006 to between $6-7 million in 2007.
Definitely makes me wonder how well they would have done if they had been able to garner all 400,000 of those planned subscribers. Note, however, that these numbers are preliminary, final numbers are expected in March.
These numbers help illustrate how difficult it will be for Virgin Mobile to get out from under its giant debt load.
Posted by Daniel Gibbons on February 5th, 2008 at 5:47 am.