Messaging on your cell phone will be getting a lot more exciting with the launch of Virgin Mobile USA’s (NYSE: VM) X-tc from Kyocera Wireless. The phone is equipped with a sleek, slide-out QWERTY keypad that’s perfect for text fiends and fans. The answer to all your messaging needs, the X-tc keeps you connected with full messaging capabilities including IM and email support. The device will retail for $99.99 without an annual contract and will be rolling out to retail stores in April. The X-tc is scheduled to go on sale online at virginmobileusa.com on April 6. Information about the X-tc is available at http://www.virginmobileusa.com/ phones/catalog.do. (more…)
On 03.16.09, In Mobile, By Editor
On 03.04.09, In Mobile, By Editor
Virgin Mobile USA, a leading national provider of wireless communications services, reported its financial and operational results for the fourth quarter and full year ended December 31, 2008.
Full year 2008 highlights:
- End of period subscribers of 5.4 million, up 6% year over year
- Total operating revenues of $1.3 billion, Net service revenues of $1.2 billion; both flat year over year
- Adjusted EBITDA of $101.1 million; Adjusted EBITDA excluding transition and restructuring costs of $115.2 million, up 16% year over year(1)
- Net income of $7.9 million versus net income of $4.2 million, up 88% year over year
- Diluted earnings per share of $0.13; Adjusted earnings per share of $0.26(1) compared to pro forma earnings per diluted share of $0.06(3) for 2007
- Free cash flow of $25.7 million up 130% from 2007; Unlevered free cash flow of $57.8 million
Fourth quarter 2008 highlights:
- Total operating revenues of $347.1 million, Net service revenues of $326.7 million; up 5% and 10% year over year, respectively
- Adjusted EBITDA of $12.6 million; Adjusted EBITDA excluding transition and restructuring costs of $18.0 million, up 84% year over year(1)
- Gross customer additions of 960,421, flat year over year
- Net customer additions of 216,005, up 3% year over year
- Net loss of ($4.4) million compared to net loss of ($14.7) million in the fourth quarter 2007
- Diluted loss per share of ($0.12); Adjusted net loss per share of $(0.05); compared to pro forma loss per diluted share of ($0.28)(3) in the fourth quarter of 2007
On 12.12.08, In Mobile, By Editor
Exclaim(R), the leading publisher of innovative user-generated content, socialization & infotainment community applications for mobile consumers, today announced the launch of its MyApps portfolio of mobile applications on Virgin Mobile USA’s on-deck storefront. MyHoroscope, MyLovesigns and MyFaith, part of the MyApps Infotainment Community portfolio of mobile applications, are immediately available on select Virgin Mobile USA handsets as a downloadable monthly subscription application. MyApps are available on more than 30 carriers worldwide since their launch two years ago, and with the addition of Virgin Mobile USA, expands its reach with an additional five million subscribers.
Exclaim’s MyApps mobile lifestyle applications enable consumers to have more fun with their phones,” says Jiren Parikh, President of Exclaim. “By expanding distribution to Virgin Mobile USA, we are reaching a well sought after demographic on a mobile carrier with a terrific brand and fantastic line up of devices.”
“We are delighted to offer Exclaim’s MyApps to Virgin Mobile USA customers with a variety of subscription based content that they can choose based on their interests. MyApps allows customers to keep up with their interests conveniently right on their mobile phone,” said Hila Dar, product manager for mobile content for Virgin Mobile USA. The following MyApps are available on Virgin Mobile USA:
- MyHoroscope: daily astrological updates on Love, Business, Career, Compatibility, including Zodiac images to personalize screen & caller ID.
- MyLovesigns: daily astrology-romance advice for Singles, Couples, Love Match and more! Share the good, bad & ugly on your love life.
- MyFaith: spiritual well being & daily guide to prayers, verses, calendars, facts, wallpapers & more. 6 major religions including Buddhism, Christianity, Hinduism, Islam, Judaism and Sikhism.
MyApps are available as a monthly subscription for $2.99 on Virgin Mobile USA handsets including Arc, Cyclops, Super Slice and Wild Card. More information on Exclaim’s MyApps is available at www.myapps-mobile.com.
About Exclaim
Exclaim is a leading mobile application publisher and platform developer for sharing, socialization and personalization of user-generated and infotainment content over wireless networks. Its branded & white-labeled apps are deployed on more than 40 wireless carriers worldwide and available for BREW, JAVA, BlackBerry, Symbian & browser enabled devices as downloadable, embedded and WAP offerings. The MyApps(R) portfolio, including category leaders MyHoroscope(TM), MyLovesigns(TM), and MyFaith(TM) deliver rich media and community to users’ handsets for information, entertainment and socialization. For more information visit www.exclaim.com.
About Virgin Mobile USA
Virgin Mobile USA, through its operating company Virgin Mobile USA, L.P., offers more than five million customers control, flexibility and choice through Virgin Mobile’s Plans Without Annual Contracts and postpaid offerings through Helio By Virgin Mobile, with national coverage for both powered by the Sprint PCS network. For more information visit www.virginmobileusa.com and www.helio.com.
On 11.18.08, In Mobile, By Editor
Virgin Mobile plans a job cut of 45 employees, counting for a 10% of its workforce, in California and New Jersey, in order to reduce it’s operating costs.
According to the operator the job cut reflects the acquisition of Helio and outsourcing of its information technology functions to IBM Corp.
Virgin Mobile USA Chief Executive Dan Schulman said the company is “well positioned to weather these tough times and build our business in 2009.”
He additionally said that the prepay cell phones attract the cost-conscious consumers.
Virgin Mobile USA’s John Feehan, chief financial officer, has decided to retain his position, after he was slated to leave the company.
On 11.11.08, In Mobile, By Editor
Virgin Mobile USA, posts its net earning in Q3′08, where its profits rose, in contrast with the economy crisis, driven by Helio’s acquisition.
“These results clearly demonstrate that we’ve done quite a good job in making the Helio customers immediately profitable,” says CEO Dan Schulman.
“We’re at the beginning of what could be a deep and long recessionary period and so I think it would be quite optimistic to think we’re coming out of this at the end of 2009. I think that has the potential to go on 18 to 24 months, or longer, before we see a rebound,” he said.
According to Schulman the economic crisis had made this prepaid or pay-as-you go wireless service specialist more attractive and its tariffs more lucrative making it earn net profit of $4.1 million in Q3.
Total operating revenue rose to $323.2 million, rising from $319.5 million since last year and the ARPU in the Q3 saw a downfall of 2% from a year earlier to $20.19.
On 09.17.08, In Mobile, By Editor
Virgin Mobile appoints SK Telecom’s Richard Chin and Sungwon Suh to its board after it acquired Helio and SK Telecom’s investment in the company.
Chin is President of SK Telecom Americas and is responsible for the company businesses and a goal to develop oppurtunities for greater market penetration.
Suh is EVP and Head of Global Strategy and Investment for SK Telecom and oversees operator’s globalization drive of partnerships and acquisitions.
On 08.25.08, In Mobile, By Editor
Virgin Mobile, USA, the leading national provider of pay-as-you-go wireless services has announced it’s completion of the acquisition of Helio, a joint venture between SK Telecom and EarthLink, that complements Virgin Mobile USA’s strengths through its specialization in highly advanced postpaid products and services. All necessary regulatory approvals have been obtained.
In connection with the acquisition, Helio shareholders SK Telecom and EarthLink and have received limited partnership units and shares equivalent to 13 million shares of Virgin Mobile USA Class A common stock, with a value of $38 million based on the average closing price of Virgin Mobile USA’s Class A shares, as of two trading days before and two trading days after the date of announcement. In addition, SK Telecom and Virgin Group will each invest $25 million in Virgin Mobile USA for preferred shares.
Dan Schulman, Chief Executive Officer, Virgin Mobile USA, emphasized the benefits of the transaction to Virgin Mobile USA and the new opportunities for growth it creates. “Adding Helio’s differentiated postpaid offer to Virgin Mobile USA’s existing portfolio will expand both our market opportunity and our ability to deliver new products and services more rapidly,” he said. “We believe this transformative transaction will bolster our leading position in the wireless space, and enable us to provide customers with whatever they need in wireless, always with our focus on great value, flexibility and customer service. We look forward to revealing our roadmap for expanded, innovative offers in the near future.
“This acquisition of Helio also comes with a number of financial benefits, including improved network rates from Sprint for Virgin Mobile USA, and strategic investments by SK Telecom and Virgin Group which improve our capital structure and increase liquidity,” Schulman said.
Schulman said that the transaction provides Virgin Mobile USA with:
a set of unique and differentiated data applications
entry into the postpaid market, with a sophisticated billing and customer care platform
approximately 170,000 Helio customers
revised terms for the Sprint PCS Services Agreement expected to result in an 8% reduction in the Company’s effective cost per minute in 2009
reduction in net debt of approximately $35 – $40 million, through the investments of $25 million each by SK Telecom and Virgin Group in the form of preferred mandatory convertible stock at the price of $8.50 per share
an increase to Virgin Mobile USA’s total revolver from $75 million to $135 million, through additional commitments of $25 million by Virgin Group and $35 million by SK Telecom
the addition of SK Telecom as a strategic shareholder with two seats on the Company’s Board of Directors.
A percentage of the equity issued and issuable in the transaction will be subject to escrow for one year to secure certain indemnification obligations.
On 08.25.08, In Mobile, By Editor
Virgin Mobile, USA, the leading national provider of pay-as-you-go wireless services has announced it’s completion of the acquisition of Helio, a joint venture between SK Telecom and EarthLink, that complements Virgin Mobile USA’s strengths through its specialization in highly advanced postpaid products and services. All necessary regulatory approvals have been obtained.
In connection with the acquisition, Helio shareholders SK Telecom and EarthLink and have received limited partnership units and shares equivalent to 13 million shares of Virgin Mobile USA Class A common stock, with a value of $38 million based on the average closing price of Virgin Mobile USA’s Class A shares, as of two trading days before and two trading days after the date of announcement. In addition, SK Telecom and Virgin Group will each invest $25 million in Virgin Mobile USA for preferred shares.
Dan Schulman, Chief Executive Officer, Virgin Mobile USA, emphasized the benefits of the transaction to Virgin Mobile USA and the new opportunities for growth it creates. “Adding Helio’s differentiated postpaid offer to Virgin Mobile USA’s existing portfolio will expand both our market opportunity and our ability to deliver new products and services more rapidly,” he said. “We believe this transformative transaction will bolster our leading position in the wireless space, and enable us to provide customers with whatever they need in wireless, always with our focus on great value, flexibility and customer service. We look forward to revealing our roadmap for expanded, innovative offers in the near future.
“This acquisition of Helio also comes with a number of financial benefits, including improved network rates from Sprint for Virgin Mobile USA, and strategic investments by SK Telecom and Virgin Group which improve our capital structure and increase liquidity,” Schulman said.
Schulman said that the transaction provides Virgin Mobile USA with:
a set of unique and differentiated data applications
entry into the postpaid market, with a sophisticated billing and customer care platform
approximately 170,000 Helio customers
revised terms for the Sprint PCS Services Agreement expected to result in an 8% reduction in the Company’s effective cost per minute in 2009
reduction in net debt of approximately $35 – $40 million, through the investments of $25 million each by SK Telecom and Virgin Group in the form of preferred mandatory convertible stock at the price of $8.50 per share
an increase to Virgin Mobile USA’s total revolver from $75 million to $135 million, through additional commitments of $25 million by Virgin Group and $35 million by SK Telecom
the addition of SK Telecom as a strategic shareholder with two seats on the Company’s Board of Directors.
A percentage of the equity issued and issuable in the transaction will be subject to escrow for one year to secure certain indemnification obligations.
On 07.08.08, In Mobile, By Editor
Virgin Mobile USA LP has agreed to hire International Business Machines Corp. to handle information technology operations and develop new applications.
Under the Friday agreement, New York-based IBM will hire 44 Virgin Mobile employees at current pay levels for two years.
The companies expect a five-year initial term for the agreement, from May 15, 2008, according to a Monday filing with the Securities and Exchange Commission. New Jersey-based Virgin Mobile can extend the agreement, which also includes engineering services, for one year. The agreement will provide undisclosed IT-related operational cost savings and help the company compete in new product and service delivery, according to a release.
Virgin Mobile will pay IBM through fixed and variable charges, the latter of which will change depending on Virgin Mobile’s need for services. Fees for operations and infrastructure will depend on factors such as the number of servers or workstations needed, the filing said. Network operations center, application development and certain other fees will be hourly. Charges will be adjusted beginning in 2010 based on general economic indicators.
Financial terms of the agreement are not being released.
Virgin Mobile can cancel the agreement with 180 days’ notice plus a fee and deferred transition costs. It may also have to pay wind-down charges for canceling third-party agreements, ending leases or firing employees. The charges wouldn’t apply if IBM didn’t meet certain service levels or violated the agreement.
If either party ended the agreement, Virgin Mobile could ask IBM to provide continuing services for one year to 15 months.
Virgin Mobile plans to file the agreement with the SEC in conjunction with its second-quarter financial report.
On June 27 , Virgin Mobile agreed to buy Helio for about $39 million in equity.
United Kingdom-based Virgin Group and Sprint Corp., the predecessor of Overland Park-based Sprint Nextel Corp, each invested as much as $150 million in mid-2002 to form Virgin Mobile.
Wireless Mobile Telecom Wireless News
On 07.01.08, In Mobile, By Editor
Virgin Mobile said Friday that it will pay $39 million in stock for mobile phone carrier Helio, which has 170,000 subscribers.
Moreover, Virgin Group and SK Telecom, the South Korean carrier that is majority owner of Helio, will each invest $25 million in Virgin Mobile. That will give SK Telecom a 17% stake in the mobile phone company.
Virgin Mobile said it will continue Helio’s advanced data services and its customer-service plans.
However, critics say Virgin Mobile reported net customer additions fell 94% during the first quarter. The mobile company continues to be hard hit by the economic downturn. Helio has struggled to turn a profit and increase its own customer base. Its phones – a strong suit of the company – have lagged behind rivals such as Apple Inc’s iPhone.
At the end of March, Virgin Mobile had 5.1 million customers, making it one of the largest mobile network operators in the US.
Wireless Mobile Telecom Wireless News