MetroPCS Falls As Company Cuts Subscriber Forecast

DALLAS (AP) — MetroPCS Communications Inc. shares fell Thursday after the low-cost wireless provider reported a higher quarterly profit but cut its full-year subscriber forecast, citing continued economic weakness in the U.S. and increasing wireless market competition.

Shares of MetroPCS fell 69 cents, or 10.4 percent, to $5.93. Earlier, the shares traded as low as $5.65, its cheapest level since MetroPCS began trading publicly in April 2007.

MetroPCS said it earned $73.6 million, or 21 cents per share, for the third quarter ended Sept. 30. That's an increase of 64 percent from $44.9 million, or 13 cents per share, in the year-ago quarter.

Revenue rose 30 percent to $895.6 million. Service revenue, which makes up the majority of revenue, rose 33 percent to $812.3 million.

Analysts polled by Thomson Reuters expected a profit of 9 cents per share on $869.4 million in revenue.

MetroPCS had more than 6.3 million subscribers at the end of the quarter, compared with 4.8 million in the year-ago quarter. The company said this was below expectations and was caused by a drop in gross additions and increase in the rate of "churn," or customer turnover.