OVERLAND PARK, Kan.—Sprint PCS reported first-quarter results at the high end of company and analysts expectations and provided hope that the industry could meet reduced targets for the quarter.
The nation’s largest personal communications services carrier said it added approximately 725,000 net direct subscriber additions for the quarter and 228,000 net affiliate subscribers, ending the quarter with 14.3 million direct customers and 16.7 million subscribers including its affiliates.
Net operating revenues increased from $2 billion last year to $2.8 billion this year, with operating income rising from a loss of $282 million to a gain of $113 million. Earnings before interest, taxes, depreciation and amortization also increased from $253 million to $640 million.
Helping drive the carrier’s strong revenue growth was an increase in average revenue per user from $59 during the first quarter last year to $60 this year and a reduction in the cost to acquire a new customer from $325 to $305.
Sprint PCS also surprised many analysts when it reported 3-percent customer churn for the quarter, with most expecting around 3.2-percent churn.
