KANSAS CITY, Mo.—Sprint PCS reported $2.76 billion in revenue for the fourth quarter of 2001, an increase from the $1.94 billion reported during the fourth quarter of 2000. The carrier attributed some of the growth to an increase in average revenue per user from $60 to $61.
Net loss for the quarter fell from $515 million, or 53 cents per share, in 2000, to a loss of $328 million, or 32 cents per share, last year. Analysts were expecting a loss of around 32 cents per share.
In addition to providing fourth quarter results, Sprint PCS provided guidance for 2002. The carrier cut net subscriber addition estimates for the year from between 3.6 million and 3.7 million to just over 3 million net additions for the year, following a slower than expected fourth quarter in which the carrier added 1.11 million customers, at the low end of estimates.
“Fourth quarter results for the PCS Group and the industry suggest that growth in the near-term will be slower than anticipated just a few months ago,” Sprint Corp. said in a statement.
Sprint PCS also noted it expects customer churn to rise during the first quarter of this year from its current 3 percent due to nonpayment by customers and a greater turnover among its Clear Pay subscribers, though it expects full-year churn to remain at 3 percent.
The-slower-than-expected forecasts caused havoc on the carrier’s stock price, which was down more than 20 percent in early Tuesday trading to a new 52-week low of $10.40 per share.
