Clearwire reported a wider first-quarter loss due to costs associated with expanding its coverage area. The Kirkland, Wash.-based company posted a loss of $176.4 million, or $1.08 per share, for the first quarter, compared with a loss of $92.6 million, or 64 cents per share, for the same quarter last year.
While losses nearly doubled, Clearwire reported revenue rose 76% to $51.5 million from $29.3 million year-over-year, and that it added 48,000 net new subscribers during the quarter. The company says it now has a total of 443,000 subscribers.
“We began 2008 with an impressive first quarter across all major metrics,” Clearwire CEO Benjamin Wolff said in a statement. “Our revenues grew a noteworthy 76% over last year’s first quarter. This was the result of the solid subscriber growth, as well as our successful expansion of service offerings to include residential voice service in more markets and a PC Card. We remain focused on increasing shareholder value by leveraging our residential broadband services, coupled with our dedication to customer satisfaction.”
Last week Clearwire and Sprint Nextel announced plans to create a $14.55 billion communications company that hopes to offer wireless broadband services across the country.