Virgin Mobile Posts Higher 1Q Profit, Shares Soar

WARREN, N.J. (AP) — Shares of Virgin Mobile USA Inc. jumped Monday after the wireless carrier posted solid results for the first quarter, with net income up sharply from last year's profit as expenses declined and revenue inched higher.

The company earned $13.4 million, or 19 cents per share, in net income attributable to Virgin Mobile shareholders, up from a profit of $4.7 million, or 7 cents per share, in the year-earlier period. The 2008 quarter included a $2.3 million loss on an interest rate swap.

Adjusted earnings were 24 cents per share in the latest quarter. This excluded transition and restructuring costs related to the company's acquisition of Helio, along with other items. Virgin Mobile closed the acquisition of cellular carrier Helio LLC for $38 million in stock last August.

Revenue climbed 2.2 percent to $337.3 million from $330 million.

Analysts, on average, were expecting a profit of 10 cents per share on revenue of $359.4 million, according to a poll by Thomson Reuters.

"We are pleased with our first quarter results and the initial success of our new offers focused on high-quality customer additions," said Dan Schulman, chief executive, in a statement.

The company said its churn, or customer turnover rate, was 4.8 percent, down from 5.1 percent a year earlier. Operating expenses dropped to $301.1 million from $313.4 million.

Virgin Mobile's shares jumped 57 cents, or 20 percent, to $3.47 in midday trading.