Virgin Mobile has 5 Million Customers & Stiff Competiton.

By Editor Wireless and Mobile News on February 4, 2008 1:55 PM

Virgin Mobile USA selected preliminary subscriber information and financial guidance for the fourth quarter and full year 2007.

In the fourth quarter 2007, the Company expects to report net customer additions of approximately 210,000, bringing the total number of net additions for 2007 to approximately 512,000. Customer additions during the quarter reflect the company’s goal to attract and retain high value customers with positive return on investment. Having just passed its fifth anniversary in 2007, Virgin Mobile USA ended the year with 5,085,886 customers.

The Company expects to report churn of 5.1% for the fourth quarter of 2007, representing a decline of 50 bps from the same period in 2006. Churn for the full year 2007 is expected to be 4.9%, compared to 4.8% for the full year 2006. The Company is updating its guidance for Adjusted EBITDA to $95-$100 million for the full year 2007, representing minimum growth of 98% compared to the full year 2006. Based on preliminary data, the net loss for the full year 2007 is expected to be in the range of ($6)-($3) million.

“We are very pleased with our growth in Adjusted EBITDA for the full year 2007,” stated Dan Schulman, Chief Executive Officer, Virgin Mobile USA. “We believe that sustainable, disciplined customer acquisition will result in higher return on investment and growth over the long term.” Throughout the fourth quarter and holiday season, Virgin Mobile USA made the strategic decision not to participate in the practice of aggressive handset pricing at the $5.99 level. “Our experience tells us that this temporary, aggressive pricing can produce poor customer economics,” added Schulman. “Virgin Mobile has a strong, competitive offer and we are focused on building long-term value for our shareholders.”

Virgin Mobile USA expects to release additional financial results for the fourth quarter and full year 2007 and guidance for the full year 2008 in March 2008.