hit with a lawsuit related to it. Things aren’t looking much better with this report. They’ve basically come in below expectations in everything, and haven’t made very optimistic projections for 2008. While analysts felt that Virgin could have added up to 400,000 subscribers in the fourth quarter, they ended up with just 209,669 net. This is reportedly because many of their customers bolted for pay-as-you-go plans offered by the major carriers: Verizon and AT&T. What’s worse is the projection for this current quarter. Michael Nelson, analyst with Stanford Group Co., estimates 130,000, but it’s said that Virgin might add as few as 5,000. Then they’d have some serious questions to answer from investors who have seen their stock tumble from a $15 opening to a current rate of $3.30.
“This is materially worse than even the most bearish outlook,” Nelson said in a telephone interview. “Virgin Mobile is being marginalized.”Virgin is looking to blame the economic times for their difficulties. While there is a level of merit in that, I don’t think that missing your estimated customer gains by 125,000 on the short end can all be heaped on the economy. In fact, prepaid companies stand to gain customers in times of economic downturn. While the average revenue per user might go down, the sheer number of subscribers should rise. That is, unless they’re all using Verizon’s and AT&T’s prepaid plans. [Bloomberg]]]>
its a sad news….lets see whether Virgin is able to make a place in the market.,