UPDATE 4-Holiday promotions to hurt MetroPCS, shares dive

* Rate plan changes, Q4 promotions pressure ARPU - CFO

* MetroPCS not talking to Leap; not considering sale

* Q3 EPS $0.21 vs est $0.09; Q3 rev beats estimates

* Cuts subscriber, EBITDA forecasts for 2009

* Shares sink more than 14 pct to all-time low (Adds CEO comments from interview)

By S. John Tilak

BANGALORE, Nov 5 (Reuters) - MetroPCS Communications Inc's (PCS.N) warning that holiday season promotions could hurt the revenue it gets for each subscriber sent shares plunging to an all-time low, showing that intensifying competition continues to peg back the low-cost wireless carrier.

The fierce dogfight in the cheap unlimited wireless prepaid services sector, as larger carriers show interest in what was once the domain of MetroPCS and rival Leap Wireless (LEAP.O), has led to chatter that the company could be considering selling itself.

But CEO Roger Linquist downplayed the M&A talk.

MetroPCS was not considering the option of selling itself, nor was it in talks with Leap, Linquist told Reuters in an interview.

"We're not currently pursuing them," Linquist said. Companies like America Movil (AMXL.MX)(AMX.N), AT&T (T.N) or Deutsche Telekom's (DTEGn.DE) T-Mobile USA have been seen as possible acquirers by analysts.

When asked if MetroPCS was approached by companies interested in buying the carrier, Linquist said: "I wouldn't comment on that anyway, but I'd say no."

MetroPCS shares reversed course after opening up 4 percent as investors continued to punish the stock, which has shed 45 percent since it last reported quarterly results in August.

"The rate plan changes we made in August and fourth-quarter promotions will result in downward pressure in average revenue per user (ARPU) over time," Chief Financial Officer Braxton Carter said on a conference call.

In the interview, Linquist said ARPU could be hurt in the fourth quarter and further in 2010.

Earlier, the low-cost wireless carrier reported quarterly earnings and revenue above market estimates as average revenue per user rose in the third quarter.

The results come after a disastrous second quarter, when the company missed estimates on all major financial metrics including EBITDA, revenue and net subscriber additions. MetroPCS shares have shed 45 percent since then.

In the third quarter, the company added fewer subscribers than analysts had expected, as net additions in its core markets fell, and it cut its outlook for the year.

"We were disappointed with this quarter's subscriber growth," Linquist said on the conference call.

MetroPCS -- whose rivals include Sprint-Nextel (S.N) unit Boost Mobile -- had consolidated net subscriber additions of about 66,000 in the third quarter. This compares with 249,000 in the year-ago period and 206,000 in the second quarter.

"MetroPCS is trying to balance subscriber growth with profitability," Soleil/Nelson Alpha Research analyst Michael Nelson said.

"Subscriber growth fell off a cliff during the quarter," Nelson said. "But the company was able to expand margins and generate strong EBITDA growth by leveraging the low-cost business model."

PROFIT RISES

MetroPCS reported a 35 percent rise in consolidated adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to $272 million.

Analysts on average had expected EBITDA of $227.6 million, according to Thomson Reuters I/B/E/S.

Average revenue per user rose 1 percent to $41.08 in the quarter. Churn, a measure of customer attrition, rose 1 percentage point to 5.8 percent. Earlier in the quarter, TracFone Wireless Inc, the U.S. unit of Mexican cellphone giant America Movil (AMXL.MX) (AMX.N), said it will sell low-cost prepaid plans at Wal-Mart Stores Inc (WMT.N), heightening the competition in the sector.

Third-quarter net income rose to $73.6 million, or 21 cents a share, from $44.9 million, or 13 cents a share, a year earlier. Revenue rose 30 percent to $895.6 million. [ID:nWNAB0638]

Analysts expected earnings of 9 cents a share, excluding exceptional items, on revenue of $869.4 million.

For 2009, the company forecast net subscriber additions of 1.0 million to 1.2 million. It expects consolidated adjusted EBITDA of $850 million to $950 million.

It had earlier forecast net subscriber additions of 1.4 million to 1.7 million and consolidated adjusted EBITDA of $900 million to $1.1 billion.

MetroPCS shares were down 12 percent at $5.84 at midday Thursday, after hitting an all-time low of $5.66, on the New York Stock Exchange. (Reporting by S. John Tilak; Editing by Deepak Kannan, Saumyadeb Chakrabarty and Gopakumar Warrier)