MCLEAN, Va.-Nextel Communications Inc. reported its total revenue during 1997 increased by 122 percent to $739 million compared with $332.9 million for 1996.
Fourth-quarter total revenue increased 187 percent to $275 million compared with $96 million the previous year. Radio service revenue increased 139 percent for the year to $712.2 million compared with $297.5 million in 1996.
The consolidated net loss attributable to common shareholders for the fourth quarter was $841.5 million, or $3.18 per share, and $1.6 billion, or $6.59 per share, for the year. The consolidated net loss for 1997 includes the effect from certain matters that were previously disclosed, including an extraordinary loss related to the early extinguishment of debt and the non-cash effect on income tax expense and amortization expense relating to the change in the amortization period from 20 years to 40 years from certain intangible assets including Federal Communications Commission licenses, said Nextel.
The enhanced specialized mobile radio operator reported customer usage remained strong with monthly average revenue per digital unit in service of $68, an increase of 21 percent from last year’s fourth quarter monthly average revenue of $56 per digital unit.
Nextel’s average monthly subscriber churn rate for the fourth quarter was 1.4 percent.
Nextel also announced its wholly owned subsidiary Nextel International Inc. made an investment in a new joint venture in Peru, purchasing a 70-percent interest in the common equity of Valorcom S.A. for $27.9 million. Nextel International also announced it now holds 100 percent of the equity in its Mexican and Argentine operating companies. In December, Nextel Argentina acquired an additional 60 SMR channels in Buenos Aires for $12 million in a government auction.
