OVERLAND PARK, Kan.-Although Sprint PCS experienced increased revenues and narrower losses for the second quarter ended June 29, the wireless service provider added drastically fewer subscribers than it did during the same time last year, and it confirmed predictions that it would end the year with about 1.5 million fewer new subscribers than it added in 2001.
Sprint PCS said it added approximately 308,000 customers during the quarter, hitting revised estimates it set last month. The company originally forecasted around 700,000 net customer additions. The company counted about 843,000 net subscriber adds for the second quarter of 2001.
“Overall customers additions were impacted by competitive pressures, tightened credit policies, certain prime customer segments and delayed purchases by some customers in anticipation of the upcoming national 3G launch,” Sprint PCS said.
Sprint PCS still expects 2002 customer additions to fall 10 percent to 15 percent below its previous goal of 3 million to between 2.5 million and 2.7 million. The company added 4 million customers in 2001.
The company reported revenues for the quarter of $3 billion, a 32-percent increase from the $2.3 billion in revenues reported for second-quarter 2001. Sprint PCS recorded a net loss for the quarter of $170 million, or 17 cents per share, compared with a loss of $247 million, or 26 cents per share, for the same time last year.
Average monthly revenue per user was $63, compared with $62 in the second quarter 2001, and $60 in the first quarter of this year.
Sprint PCS said the cost to acquire a new customer was about $350 in the second quarter, up from $305 in the first quarter, and $300 in the second quarter of last year. The company attributed the higher costs to lower gross additions and higher rebate promotions.
Shares of Sprint PCS were up 79 cents in early afternoon trading.
