MCLEAN, Va.-Nextel Communications Inc. reported revenues during the first quarter of $327 million, a 196-percent increase compared with revenues of $110.7 million for the first quarter of 1997.
However, net loss for the quarter increased to $386.9 million, or $1.53 per share, compared with a net loss of $220.9 million, or 93 cents per share, for the same period during 1997. The consolidated net loss attributable to common stockholders for the first quarter of 1998 was $415 million, or $1.53 per share, which includes approximately $28.1 million, or 10 cents per share, for cumulative preferred dividends and approximately $28.7 million, or 11 cents per share, for international operations.
The company said it added a record amount of digital subscribers with 370,800 new subscribers during the quarter, for a total of more than 1.6 million total digital subscriber units in service in the United States.
Analog units in service stood at 493,600 at the end of the quarter, with less than 10 percent of first-quarter digital additions coming from Nextel’s analog customer base, said the company.
Monthly average revenue per digital unit in service increased 12 percent to $66 compared with the first quarter of 1997.
The company also said it reduced by 32 percent its bad-debt expenses compared with the fourth quarter of 1997. The improvement in bad-debt expenses is a result of Nextel’s ongoing efforts to clean up its receivables. The program resulted in a number of older, nonpaying customer accounts being disconnected, which contributed to a higher churn rate for the quarter of about 1.7 percent.
During the first quarter, Nextel International expanded its ownership interest in Nextel Argentina to 100 percent for $46 million, purchased a 21-percent stake in a Japanese wireless operator for $32 million and acquired a 70-percent interest in a Peruvian wireless operator for approximately $28 million.
