Clearwire yesterday reported 3Q ’09 total revenue up 13%, to $68.812 million, and nine-month revenue ’09 revenue of $194.543 million, up 14%, as compared to pro forma 2008 results for the corresponding periods.
Driving the 3Q revenue increase, CLEAR 4G WiMAX net subscriber adds totaled 49,000 and consolidated net subscriber adds totaled surpassed 44,000 for 3Q ’09, according to the company.
Key to Clearwire’s 4G WiMAX expansion plans, Clearwire management was able to obtain equity and high-yield bond capital commitments–$1.564 billion and $240 million, respectively– from business partners Bright House Networks, Comcast, Google, Intel, Sprint Nextel and Time Warner.
Clearwire’s 4G network coverage increased 67% to more than ten million people during 3Q with the introduction of its mobile broadband service in 11 new markets. Management’s plan is to grow this further, to reach more than 30 million, by the end of the year. Planned launches in Honolulu, Maui and Seattle are on schedule, they reported.
“Our solid third quarter operating results demonstrate our ability to execute on our plans, and address the growing demand for super fast mobile Internet by delivering 4G services to cities across the nation,” CEO Bill Morrow commented.
“Through our own sales channels and those of our wholesale partners, including Sprint, Comcast and Time Warner Cable, we’re bringing consumers and businesses a new category of Internet service designed to make people’s lives more enjoyable and more productive, wherever they happen to be in our coverage area. We are very pleased to have announced reaching a definitive agreement with many of our strategic investors for $1.564 billion in additional equity funding for our planned network expansion, subject to final closing conditions. It is further evidence of the importance of 4G to our strategic stakeholders who are relying on our network to bring new services to their customers.”
- CLEAR 4G WiMAX 3Q net subscriber adds of 49,000; consolidated net adds over 44,000; 81,000 net adds through nine months this year as compared to 75,000 last year;
- Total subscribers up over 18%, to 555,000 as of end 3Q ’09 as compared to 469,000 end 3Q ’08;
- ARPU of $39.71 for this year’s 3Q as compared to $40.43 3Q ’08 (down 1.8%);
- Churn up slightly to 3.1% in 3Q ’09 as compared to 3% a year ago; 2.9% vs. 2.6% year to year comparison through nine months;
- Nationwide spectrum holdings total more than 43 billion MHz POPs.
- 3Q revenue of 13% year-to-year on a quarterly basis, from $60.839 million to $68.812 million;
- Nine-month revenue up 14%, from $170.930 million to $194.543 million year-to-year;
- 3Q ’09 net loss of $82.427 million ($0.43 per share fully diluted), down 13% from actual loss of $137.603 million a year ago;
- Nine-month ’09 loss of $226.856 million, 28% smaller than the $314.606 million actual loss recorded through the first nine months of 2008;
- 3Q ’09 operating loss totaled $291.326 million, 33% greater than the $219.295 million calculated pro forma for 3Q ’08. Nine month operating loss totaled $765.679 million, 14% greater than the $673.133 million loss calculated pro forma for three quarters in 2008;
- Adjusted for non-cash items, Adjusted OIBDA came in at -$193.817 million for 3Q, down 33% quarter over quarter on a pro forma basis, and -$484.974 million through three quarters this year, down 8% from -$450.644 million pro forma a year ago;
- Capital expenditures of $410 million in 3Q ’09 as compared to $129 million a year ago; $773 million vs. $655 million through first nine months ’09 vs. first nine months ’08;
- Cash and short-term investments total $2 billion;
- Planned 4Q ’09 and full-year Total Net Cash Spend of $750 million and approximately $1.9 billion, respectively, at the high-end of management originally planned range set at the beginning of the year.