Leap Wireless’ loss widens in 1st quarter as expenses more than offset revenue growth

Leap Wireless 1st-quarter loss widens on expenses

SAN DIEGO — Leap Wireless International Inc., a provider of low-cost, prepaid wireless service, said Thursday that its first-quarter loss widened as higher operating expenses and an increased interest expense more than offset service revenue growth.

For the quarter ended March 31, Leap reported a loss of $68 million, or 90 cents per share, compared with a loss of $50.3 million, or 74 cents per share, in the same quarter last year.

Analysts polled by Thomson Reuters expected a loss of 66 cents per share.

Revenue rose 11 percent to $654 million, due mostly to increased revenue from Leap’s wireless services, which rose to $584.8 million from $514 million. The results were slightly below the $655.1 million in revenue analysts predicted.

Leap’s operating expenses rose 9 percent to $647.4 million, including $109.2 million for depreciation and amortization.

Leap also reported a $60.3 million interest expense, up from $41.9 million in the same quarter a year earlier.

The company added 446,000 net customers to its Cricket wireless service during the quarter and had 5.4 million customers by the end of the period — up 24.5 percent from the year-ago quarter.

Leap said its first-quarter rate of churn, or customer turnover, climbed to 4.5 percent from 3.3 percent.

Leap shares fell 9 cents to close at $16.78.