Wireless operators continued to post stronger-than-expected first-quarter results, showing wireless carriers are weathering fairly well the general economic downturn.
The largest carrier reporting results last week was VoiceStream Wireless Corp., which posted a first-quarter loss in line with analysts’ expectations but surprised many with its strong customer additions for the quarter.
While the carrier’s total revenues nearly tripled from last year’s $258.4 million to $732 million this year, net loss followed suit increasing from a loss of $204.2 million during the first quarter of last year, to a loss of $651.2 million this year. Loss per share also increased from $1.66 per share last year to a loss of $2.54 a share this year. Analysts polled by research firm Thomson Financial/ First Call predicted a loss of $2.55 per share.
Customer additions for the quarter totaled 484,700 subscribers, including 75,600 prepaid subscriber additions, well ahead of the 400,000 expected customer additions. VoiceStream ended the quarter with 4.4 million wireless customers, made up of 76 percent postpaid and 24 percent prepaid, according to W.R. Hambrecht +Co.
The carrier’s incremental penetration rate of 0.45 percent equaled the highest levels in the industry for the quarter posted by Sprint PCS and Cingular Wireless.
VoiceStream’s customer churn rate expanded to 4.7 percent for the quarter, including prepaid subscribers, almost double the industry average. The carrier reported its postpaid churn rate was closer to the industry average of 3.2 percent.
AT&T Wireless affiliate Triton PCS Holdings Inc. surpassed the 500,000 subscriber milestone during the quarter, adding 55,592 net customers, bringing its customer base to 501,993 subscribers. Analysts had expected additions of around 47,500 users for the quarter.
While customers spent an average of $57.62 per month, down slightly from the previous quarter’s $58.58, customer churn remained well below the industry average at 1.9 percent. Triton said this marked the eighth consecutive quarter its churn rate was below 2 percent.
Total revenue nearly doubled from $62.8 million during the first quarter of 2000, to $113.3 million this year. Net loss applicable to shareholders fell slightly from $46.7 million last year, or 75 cents per share, to a loss of $46.1 million, or 73 cents per share, this year.
Dobson Communications Corp. said it added 40,100 net subscribers during the first quarter, bringing its customer base to 971,300 subscribers. The carrier posted a low churn rate of 1.93 percent, down from the 2.01 percent reported last quarter, with ARPU of $40, unchanged from the fourth quarter.
Operating revenues totaled $149.8 million, compared with $105.3 million during the first quarter of 2000. Net loss fell sharply from $117.9 million, or $1.54 per share, to a loss of $63.5 million, or 68 cents per share.
Sprint PCS affiliate Alamosa Holdings Inc., which operates in 12 states covering 15.6 million residents, signed up 128,405 subscribers during the first quarter. The carrier finished the quarter with 261,345 customers. ARPU dropped slightly from $63 last year to $60 this year, with average costs to acquire new customers increasing from $354 to $418 over the same time frame. Customer churn dropped from 2.9 percent during the fourth quarter of 2000 to 2.6 percent.
Company revenue increased from $11.8 million last year to $45.8 million this year. Net loss also climbed from $15.5 million, or 27 cents per share, to a loss of $27.4 million, or 38 cents per share.
Fellow Sprint PCS affiliate, US Unwired Inc. also posted results last week, showing it added 46,423 net PCS subscribers. At the end of the quarter, the carrier’s customer base grew to 219,000 customers, including 172,429 PCS subscribers. Customer churn was approximately 2.5 percent for the quarter, with subscriber acquisition costs falling from $429 during the fourth quarter of 2000 to $348.
Total revenue rose from $22.2 million last year to $47.8 million, along with net loss, which increased from $19.4 million to $32.5 million. Loss per share followed suit, rising from 32 cents per share during the first quarter of 2000 to 40 cents per share this year.
