RESTON, Va.-Nextel Communications Inc. reported record year-end results for 2002, including $8.7 billion in revenue, compared with $7 billion in 2001, and $1.7 billion in income available to shareholders, or a return of $1.78 per share, compared with a $2.9 billion loss in 2001, or a loss of $3.67 per share.
For the fourth quarter, revenues increased from $1.9 billion in 2001 to $2.3 billion last year, with net income jumping from a loss of $1.8 billion in 2001, a loss of $2.25 per share, to a profit of $1.5 billion last year, a return of $1.38 per share.
Nextel’s management also reported the carrier posted $122 million in free cash flow for 2002, which was ahead of its previous guidance.
“2002 was a breakthrough year for Nextel as we grew revenues by 24 percent, fueled by strong customer demand of nearly 2 million new subscribers for Nextel’s differentiated wireless services,” said Tim Donahue, president and chief executive officer for Nextel.
Net customer additions totaled 503,000 subscribers for the fourth quarter and 1.956 million for the year. Customer churn was reported at 2.1 percent for the fourth quarter, with $69 in average revenue per user. Nextel also reported the cost per gross addition dropped from $460 during the third quarter to $440 in the fourth quarter and operating cost per user fell from $25 to $24 over the same time frame.
“There should be no doubt that Nextel is capturing an increasing share of the best wireless subscribers in the highly competitive wireless marketplace,” said Tom Kelly, executive vice president and chief operating officer for Nextel.
The carrier said it expects to post at least $500 million in free cash flow for 2003, earnings per share of at least 75 cents, less than $1.8 billion in capital expenditures and add at least 1.7 million customers.
