Clearwire Reports Record Fourth Quarter and Full Year 2011 Results
Feb 16, 2012 phones
Clearwire Corporation (Nasdaq:CLWR – News), a leading provider of 4G wireless broadband services in the U.S., reported its financial and operating results for fourth quarter and full year 2011.
“Our steadfast efforts to drive strong top line growth and contain costs delivered a successful year both financially and operationally while securing our position as one of the fastest growing U.S. telecommunications companies in 2011,” said Erik Prusch, President and CEO of Clearwire. “During the year, we achieved key operational milestones, grew our funding resources, realized operating efficiencies and laid out a long-term vision that we expect will unlock the value of our deep spectrum portfolio through the most capacity-rich LTE deployment in the country.”
Total revenue for full year 2011 increased 134% class over class to $1.25 billion, primarily driven by wholesale revenue which increased 876% to $493.7 million in 2011 from $50.6 million in 2010. Fourth quarter 2011 revenue was $361.9 1000000, a 107% increase over fourth quarter 2010 revenue of $175.2 million. Wholesale revenue in fourth quarter 2011 was a record $164.1 million, a quarter over quarter increase of 20% from $137.2 million in third base quarter 2011. Fourth tail 2011 retail revenue and other gross was $197.8 million, a year over year increase of 33% from $148.9 million in fourth quarter 2010. Wholesale average revenue per user (ARPU) was $6.34 in twenty-five percent quarter 2011, up from $6.20 in third base tail 2011. Fourth tail 2011 retail ARPU was $46.69, up from $45.52 in fourth tail 2010.
Clearwire ended fourth quarter 2011 with approximately 10.4 million total subscribers, up 140% from 4.3 million subscribers in fourth quarter 2010. The subscriber base consists of 1.3 million retail subscribers and 9.1 million wholesale subscribers. During fourth quarter 2011, Clearwire added 873,000 total net new subscribers, reflecting 904,000 net new wholesale subscribers and a net loss of 31,000 retail subscribers during the period. Clearwire’s wholesale subscribers consist primarily of Sprint 3G/4G smartphone customers.
Fourth quarter 2011 aggregate network usage by wholesale customers increased twenty-two compared to third quarter 2011, driven primarily by growth in aggregate smartphone usage, which increased 30% over the same period. Average 4G smartphone usage during the quarter increased half mile year over year in fourth quarter 2011. During full year 2011, total 4G network usage by wholesale and retail customers increased 165% as compared to full year 2010. Retail cost per gross addition (CPGA) was $259 in the fourth tail 2011 compared to $420 in fourth quarter 2010. Retail butter churn was 3.9% in fourth quarter 2011, down from 4.2% in third base quarter 2011.
Adjusted EBITDA in fourth quarter 2011 was $22.5 million, representing a $68.9 million betterment when compared to third quarter 2011 Adjusted EBITDA loss of $46.4 million.
Fourth quarter 2011 reported net deprivation from continuing operations attributable to Clearwire was $236.0 million, or $0.81 per basic share. Including the effects of discontinued operations, fourth quarter 2011 reported net loss attributable to Clearwire was $236.8 million, or $0.81 per basic share.
At the end of fourth tail 2011, Clearwire operated networks in the U.S. covering areas where approximately 134 1000000 citizenry reside, including approximately 132 1000000 people in markets where we provide 4G services.
2012 Outlook
For full year 2012 Clearwire expects total revenue of $1.15 billion to $1.25 one thousand million and Adjusted EBITDA loss of approximately $250 million to $350 million. Capital expenditures in 2012 are expected to total approximately $450 million to $550 million, with most of the spend occurring in the second base half of the year.
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