RESTON, Va.-Nextel Communications Inc. reported $2.4 billion in revenues for the first quarter of this year compared with just under $2 billion in revenue the carrier reported for the first quarter of last year. Net income applicable to stock holders also increased from a loss of $654 million last year, a loss of 82 cents per share, to a return of $208 million during the first quarter of 2003, or a return of 20 cents per share.
The carrier said it added 480,000 net customer additions during the first quarter, which was ahead of analyst expectations and pushed Nextel’s total customer base to nearly11.1 million subscribers.
Nextel also reported 1.9 percent customer churn during the first quarter of this year, which the carrier added was the lowest level in the last four years. Average revenue per user dropped from $68 during the first quarter of 2002 to $67 this year while the cost per gross customer addition decreased from $460 last year to $450 during the first three months of this year.
Nextel’s management added that the carrier also retired $568 million in principal amount of its outstanding debt and redeemable preferred stock in exchange for $570 million in cash.
