The two largest regional prepaid mobile operators in the US – Leap Wireless and MetroPCS – reported contrasting quarterly earnings yesterday, reports Reuters. Profit at MetroPCS for the fourth quarter of last year topped market estimates in a sign that the company was doing well in an increasingly competitive market. Quarterly net income rose to US$33.1 million, or 9 cents a share, from US$14.6 million, or 4 cents a share, a year earlier. Revenue rose 29 percent to US$939 million. Analysts expected earnings of 6 cents a share, excluding exceptional items, on revenue of US$895.2 million, according to Reuters. Its shares rose by as much as 8 percent in New York yesterday in response to the results. Fourth-quarter consolidated net subscriber additions rose to 317,000, from 66,000 in the third quarter. However, the firm did not provide guidance for 2010, citing the uncertainty in the economic and competitive environment.

Meanwhile, rival Leap Wireless posted a wider-than-expected quarterly loss as increased competition hurt subscriber growth. Net customer additions fell to about 297,743, compared with 385,292 in the prior quarter, and churn rose to 4.7 percent from 3.8 percent. Leap’s fourth quarter net loss was US$64 million, wider than the year earlier and worse than expected. However, revenue rose about 15 percent to US$599.3 million.”I think there was some market share shift in December quarter from Leap to Metro PCS. I think Metro PCS continues to be much more price aggressive,” said Auriga analyst Chandan Sarkar. Leap Wireless has frequently been linked to a merger with MetroPCS and turned down an unsolicited all-stock offer from MetroPCS valued at US$5.5 billion in 2007.