WEST POINT, Ga-Powertel Inc. announced its personal communications services business in the Southeast reported fourth-quarter revenues of $15.8 million, compared with third-quarter revenues of $10.2 million. Year-end revenues totaled $40.6 million.
The company, which added about 53,000 PCS subscribers during the fourth quarter, closed the year with 119,000 customers. Operating loss for its PCS segment was $55.6 million for the quarter, compared with $34.4 million in the third quarter. For 1997, PCS operating losses totaled $141 million. Average revenue per PCS unit or subscriber decreased from $58.05 in the third quarter to $54.06 in the fourth quarter. Average monthly ARPU for the year totaled $57.81.
Powertel’s cellular business, which serves portions of Alabama and Georgia, recorded revenues of $3.8 million in the fourth quarter, compared with $4.6 million for the third quarter. Service revenues for the year totaled $22.2 million. The company’s cellular segment generated $1 million in operating income for the quarter, compared with $1.6 million in the previous quarter. For the year, operating income totaled $5.9 million.
Powertel said its cellular division’s operating results reflect the impact of its divestiture of its Maine cellular property, which it divested for $77.2 million, or $175 per pop, for a 27-percent annualized return on its investment. The sale generated a book gain of $41.9 million.
Powertel President and Chief Executive Officer Allen Smith said the company’s Global System for Mobile communications PCS business will increase coverage throughout 1998, expanding to residential areas.
“During 1998, Powertel will continue to expand its coverage in key markets as well as launch its major Tennessee and Kentucky markets,” said Smith. “In the fourth quarter, we expect to have operational service in Nashville, Tennessee; and Louisville, Lexington and Frankfort, Ky. The launch of these markets will further expand our already vast contiguous footprint and provide even greater competitive advantage.”
Smith also said Powertel plans to increase its emphasis in 1998 on vertical services. The company recently rolled out a new advertising campaign aimed at selling long-distance packages to customers. Customers can pay 10 cents per minute for long-distance service within the company’s 12-state region. Outside its region, customers are charged 15 cents per minute. Powertel carries more than 80 percent of its customers’ long-distance traffic on its own network.
