Though it reported lower revenues YOYVirgin Mobile USA announced recently its financial results for the second quarter of the ongoing year, and posted net income of $21.8 million, an increase compared to the $5.5 million a year ago. At the same time, the company also announced that its revenue was of US$290 million, down from the $293.8 million it registered in the second quarter of last year.
In addition to the higher net profit, the company also announced that its adjusted EBITDA in the second quarter was of $43.9 million, marking a 36 percent increase from the $32.3 million it posted in the same time frame a year ago. The adjusted EBITDA excluding transition and restructuring expenses also went up, reaching $45 million, and marking a 35 percent increase when compared to the $33.4 million it registered in the second quarter of last year.
“Our financial results in the first half of the year have exceeded our expectations,” said Dan Schulman, chief executive officer, Virgin Mobile USA. “We grew Adjusted EBITDA excluding transition and restructuring expenses by 57% to $98 million in the first half of 2009, producing Free cash flow of more than $29 million. We continue to exceed our financial expectations and remain confident in our guidance for Adjusted EBITDA and Free cash flow for the full year 2009.”
Dan Schulman also stated that the MVNO was set to maintain a focus on its “highly profitable hybrid customer base.” During the second quarter of 2009, he notes, the company's gross adds went up to 63 percent, compared to the 55 percent in the first quarter. On a yearly basis, it saw a 20 percent growth in total hybrid gross customer additions during the first half of the ongoing year. According to the company, it ended the second quarter of the year with a number of 5.0 million customers. One more thing that should be noted when it comes to Virgin Mobile USA is that it will soon be purchased by another wireless carrier in the country, Sprint Nextel.