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NTELOS Holdings Corp. Reports First Quarter 2012 Operating Results

NTELOS Holdings Corp. (“the Company,” NASDAQ: NTLS), a leading regional provider of nationwide wireless voice and data communications and home to the “best value in wireless,” announced today operating results for its first quarter ended March 31, 2012.

First Quarter Highlights

  • Operating revenues for the first quarter 2012 increased 5.4% to $110.5 million, compared to $104.9 million for the same period in 2011;
  • Wholesale and Other revenues for the first quarter 2012 increased 25.9% to $41.3 million, compared to $32.8 million for the same period in 2011;
  • Net subscriber additions for the first quarter 2012 were 6,800, compared to a net loss of (2,900) for the same period in 2011;
  • Subscriber churn for the first quarter 2012 improved to 3.1%, compared to 3.5% for the same period in 2011; and
  • Data ARPU for the first quarter 2012 increased 31.0% to $19.05, compared to $14.54 in the same period of 2011.

“During the first quarter 2012, NTELOS continued to execute successfully against our combined wholesale / retail operating model. Revenue attributable to our wholesale business accelerated both sequentially and year-over-year, driven primarily by continued strong data growth,” noted James A. Hyde, CEO of NTELOS Holdings Corp. “I am also pleased to report that our retail operations achieved positive net subscriber additions for the quarter and our retail subscriber service revenue for the quarter showed a meaningful sequential increase, each for the first time in over two years. The positive movement in these trends reflects the increasing acceptance of our value proposition by customers within our network operating footprint.”

Highlights from Continued Operations

  • Operating revenues for the first quarter 2012 were $110.5 million, up 5.4% from the first quarter 2011. The increase in operating revenues was primarily due to an increase in wholesale revenues offsetting a decline in retail revenues;
  • Retail revenues, which include subscriber and equipment revenues, were $69.2 million for the first quarter 2012, compared to $72.1 million for the first quarter 2011;
  • Wholesale revenues under the Company’s Strategic Network Alliance with Sprint for the first quarter 2012 increased 28.5% to $39.9 million, compared to $31.0 million for the first quarter 2011;
  • Adjusted EBITDA was $35.9 million for the first quarter 2012, compared to $35.5 million for the first quarter 2011;
  • Income from Continuing Operations, less Net Income Attributable to Noncontrolling Interests, was $7.9 million, or $0.38 per basic share, for first quarter 2012 compared to $5.1 million, or $0.24 per basic share, in the same period in 2011.

Total Subscribers

  • Total subscribers were 421,300 as of March 31, 2012, compared from 414,500 as of December 31, 2011;
  • Total gross additions for the first quarter were 45,900, compared to 42,900 in the same period of 2011;
  • Total net subscriber additions for the first quarter were 6,800, compared to a loss of (2,900) for the same period in 2011.

Postpay Subscribers

  • Postpay subscriber gross additions for the first quarter 2012 were 17,000, a 5% decrease from the first quarter 2011 and an 18% decrease from fourth quarter 2011;
  • Net postpay subscriber losses were (4,800) for the first quarter 2012, flat compared to first quarter 2011 and a decrease from (1,900) for the fourth quarter 2011;
  • As of March 31, 2012, total postpay subscribers were 286,000.

Prepay Subscribers

  • Prepay subscriber gross additions for the first quarter 2012 were 28,900, compared to 25,000 for the first quarter 2011 and 20,900 for the fourth quarter 2011;
  • Net prepay subscriber additions were 11,600 for the first quarter 2012, compared to 1,900 for the first quarter 2011 and 1,400 for the fourth quarter 2011;
  • As of March 31, 2012, total prepay subscribers were 135,300.

Mr. Hyde concluded, “Increased smartphone penetration and highly-correlated increases in data ARPU continue to have a disproportionate, positive effect on our wholesale and retail businesses; a trend we expect to persist throughout 2012 and beyond. I am especially pleased with the noticeable turnaround of our retail operations, where we are just beginning to realize the benefits of the improvements we have made to our handset lineup, our consistent value proposition and brand positioning, as well as the overhaul to our retail enterprise and distribution strategy.”

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