Virgin Mobile: Profit Rises, Even On Lower Sales

Wireless provider Virgin Mobile USA (VM), soon to become part of Sprint Nextel Corp., reported higher second-quarter profit despite a drop in sales.

The Richard Branson-owned MVNO brought in $16.8 million, a leap from $3.5 million during the same period a year earlier. Lower operating costs helped buoy the numbers, executives said.

However, due in part to the recession, revenue fell from $319.9 million to $307.6 million, or 4 percent. Virgin Mobile USA lost 269,239 net subscribers.

Still, "Our financial results in the first half of the year have exceeded our expectations," CEO Dan Schulman said in a prepared statement.

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