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CORRECTED-UPDATE 1-MetroPCS net profit falls 65 pct, revenue growth slows
February 26, 2013 / 12:30 PM / 5 years ago

CORRECTED-UPDATE 1-MetroPCS net profit falls 65 pct, revenue growth slows

(Corrects first bullet point to clarify that the net profit, not adjusted profit, is comparable with analysts’ estimates. Removes reference to adjusted profit in paragraph 8)

* Fourth-quarter profit $0.09/share vs estimate of $0.11

* Revenue $1.28 bln, in line with estimates

* Expects 2013 capex of $800 million-$900 million

Feb 26 (Reuters) - Mobile phone service provider MetroPCS Communications Inc reported a 65 percent fall in quarterly net profit as revenue growth slowed for the eighth straight quarter.

The company, in the process of merging with Deutsche Telekom AG unit T-Mobile USA, said in January that it lost a net 93,000 subscribers in the fourth quarter.

The company agreed in October to a reverse merger deal with T-Mobile USA that would leave Deutsche Telekom with a 74 percent stake in the combined company. MetroPCS will declare a 1-for-2 reverse stock split and pay $1.5 billion to its shareholders.

MetroPCS will hold a special shareholder meeting on March 28 to vote on the deal, which it expects to close in early April.

P. Schoenfeld Asset Management LP, an investment adviser to shareholders holding about 2 percent of MetroPCS shares, has said it intends to vote against the merger due to the deal valuation and the high debt of the merged company.

MetroPCS said it expects capital expenditure of $800 million to $900 million this year.

Net income fell to $31.7 million, or 9 cents per share, in the quarter ended Dec. 31, from $91.3 million, or 25 cents per share, a year earlier.

Revenue rose 4 percent to about $1.28 billion.

Analysts expected a profit of 11 cents per share, on revenue of $1.28 billion, according to Thomson Reuters I/B/E/S.

Shares of the company, which closed at $9.76 on the New York Stock Exchange on Monday, have risen 6 percent in the past month. (Reporting by Sayantani Ghosh in Bangalore; Editing by Joyjeet Das)

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