(RTTNews) - Wireless broadband network service provider Clearwire Corp. (CLWR: News ), Tuesday said its second quarter loss narrowed from last year, boosted by strong subscriber base and an increase in average revenue per user. Revenues for the quarter were up 9%, however, was short of Street estimates. Providing an update to its prior outlook, Clearwire maintained its business outlook for 2009 and 2010.

For the second quarter, net loss attributable to Clearwire narrowed to $73.37 million from $74.64 million in the same quarter a year ago. On a per share basis, loss for the quarter was $0.38, compared to a loss of $0.40 in the prior-year quarter.

Net loss for the quarter was $264.04 million, compared to $281.73 million in the corresponding quarter last year.

On average, ten analysts polled by Thomson Reuters expected a loss of $0.39 per share for the quarter. Analysts' estimate typically excludes one-time items.

Revenues rose 9% to $63.59 million from $58.56 million in the same quarter last year, missing Street estimates of $65.24 million. Revenues were driven primarily by Clearwire's larger subscriber base, including the addition of three new markets year-over-year.

In the preceding quarter, Clearwire reported a loss that narrowed to $71.06 million or $0.38 per class A common share, as revenues improved driven by strong subscriber base and growth in Average Revenue Per User.
Amongst others in the industry, Frontier Communications Corp. (FTR), in its second quarter, reported a profit that dropped sharply to $27.9 million or $0.09 per share, hurt by a 5% decline in revenues, acquisition related costs and increased interest expenses. Revenue declined 5% to $532.1 million.

Another player, Qwest Communications International, Inc. (Q)reported a 17.8% year-over-year increase in profit to $212 million or $0.12 per share, boosted by improved operating margins across all business segments as well as lower costs, despite a 8.6% decline in quarterly revenues.

For the quarter under review, total subscribers of Clearwire increased to approximately 511,000, up from approximately 461,000 at the end of the second quarter 2008.Consolidated Average Revenue Per User was $39.47, up $0.19 from the $39.28 pro forma ARPU level in the prior year second quarter.

Operating loss for the quarter was $241.40 million, compared to operating loss of $208.40 million in the prior-year quarter. Total operating expenses increased to $241.40 million from $208.40 million in the comparable quarter last year.

To receive FREE breaking news email alerts for Clearwire Corporation and others in your portfolio

 1   2   Next Page