Virgin posts profit thanks to Helio buyout, more
updated 01:00 am EST, Tue November 11, 2008
Virgin Mobile posts profit
The formerly ailing Virgin Mobile was able to present a profit on its recent financial quarter, mostly thanks due to its acquisition of US wireless carrier Helio, with operating revenues and net service revenues of $323.2 million and $305 million, respectively. CEO Dan Schulman was also happy to point out that, despite a "challenging economic environment," Virgin was able to increase its customer base by 8 percent from last year, while also increasing services.
Schulman cited the Helio buyout as being a major contributing factor to the company's success this quarter, as well as the restructuring of company operations.
In addition to the above-mentioned factors, the Shuttle EVDO phone and the "$79.99 Totally Unlimited" calling plan helped boost numbers. While the factors were certainly helpful, Virgin expects that net additions will be flat for the fourth quarter, as compared to 2007.
Two new board members also joined Virgin through the buyout, helping guide the company to its profitable third quarter results. The acquisition saw Richard Chin and Sung Won Suh join the board from SK Telecom.
Virgin also drew attention to the adoption of Helio's phone plans, and the third Virgin Mobile Festival as other factors contributing to its success.
