Virgin Mobile USA’s shares jumped 57 cents (20%) to $3.47 in midday trading on news of its better than expected (i.e. positive) first quarter earnings.
The wireless carrier reported $13.4 million (19 cents/share) in net income for Q1 2009, almost triple (2.85 times, to be more precise) that of 2008 Q1’s $4.7 million (7 cents/share) earnings. Overall revenue increased 2.2% to $337.3 million from $330 million.
In reaction to the numbers, VMUSA CEO Dan Schulman stated, “We are pleased with our first quarter results and the initial success of our new offers focused on high-quality customer additions.” This could be a nod to its August 2008 (when the deal was finalized) acquisition of the cult-sensation wireless carrier, Helio.
Guess the economic downturn isn’t affecting everyone. Now, how about some more intriguing handsets, VM?
one significant reasons why virgin jumped is economic crisis in people cancel their cell phone provides and get the phone pay as you go…. you save whole lot money on that…
iTunes fail
http://www.epiclosers.com/load/8-1-0-296
Yes because in recession people tend to leave expensive mobile plan and use cheaper plans like the ones given by Virgin mobile!
Yep, I have one of these. The handsets themselves are very basic and dull, and having to pay every 90 days, regardless of whether you use it or not is something I don’t like.