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Leap Wireless 1Q Loss Grows, But Market Share Up

The Associated Press

SAN DIEGO (AP) — Leap Wireless International Inc. said Thursday its first-quarter loss swelled as the wireless communications company spent money expanding into Chicago and Philadelphia and upgrading its entire system.

The company posted a loss after paying preferred dividends of $50.3 million, or 74 cents per share, compared with a loss in the year-earlier quarter of $18.8 million, or 28 cents per share.

Revenue increased 25 percent to $587 million from $468.4 million.

Analysts polled by Thomson Reuters expected, on average, a smaller loss of 69 cents per share on higher sales of $594.9 million.

In aftermarket trading, shares fell 95 cents, or 2.7 percent, to $35.90, having closed earlier down 8.2 percent to $34.95.

Chief Executive Doug Hutcheson said the weaker income figures are "attributable to the investments the company made during the year to launch additional new markets and fully integrate its Cricket Broadband service."

Leap's expansion helped it end the first quarter with some 4.3 million customers, up from 3.1 million at the end of the year-earlier quarter.