LUBBOCK, Texas—Alamosa Holdings Inc. cut its second quarter expectations for customer additions, revised its churn estimates and increased its earnings before interest, taxes, depreciation and amortization results for the year.
Alamosa now says it expects to add between 15,000 and 25,000 net customers during the second quarter, down from its previous estimate of between 30,000 and 35,000 net subscriber additions. Customer churn is expected to be in the 3.1 to 3.3 percent range.
The carrier attributed the slower than expected customer growth to competitive sales conditions, reduced additions of sub-prime customers as a result of a new deposit requirement and a general industry slowdown.
For the year, Alamosa said it expects positive EBITDA of between $25 million and $35 million, an increase from its previous estimates of between $15 million and $20 million.
Alamosa also reaffirmed its forecast for between 190,000 and 210,000 net subscriber additions for the year, noting an expected increase in additions following the planned summer launch of its 1x network, and expected average revenue per user of between $59 and $61.
