Virgin Mobile: Subscribers and Profits

According to an article on InformationWeek it seems that Virgin Mobile’s $49.99 a month unlimited plan is partially responsible for Virgin Mobile’s strong second quarter, in this second quarter they saw profits of $16.8 million compared to last years second quarter which saw profits of $3.5 million.

Chief Executive Dan Schulman said “Our new $49.99 Unlimited offer has been particularly successful, representing 21% of all gross adds in May and June,” and said “Supporting this strategic customer focus is the sale of higher-priced handsets, which are associated with higher data usage, better churn, and significantly higher lifetime value.”

The Virgin Mobile takeover bid by Sprint is a deal worth $483 million, originally Sprint worked with Virgin to create Virgin mobile back in 2002 and Sprint have been the provider for the Virgin Mobile Network. To see full details check out InformationWeek.