RESTON, Virginia, United States-Nextel Communications reported US$2.4 billion in revenues for the first quarter of this year compared with just less than US$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 US$654 million last year, a loss of 82 U.S. cents per share, to a return of US$208 million during the first quarter of 2003, or a return of 20 U.S. 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 nearly 11.1 million subscribers.
Nextel also reported 1.9 percent customer churn during the first quarter of this year, which the carrier said was the lowest level during the last four years. Average revenue per user (ARPU) dropped from US$68 during the first quarter of 2002 to US$67 this year while the cost per gross customer addition decreased from US$460 last year to US$450 during the first three months of this year.
Nextel’s management added that the carrier also retired US$568 million in principal amount of its outstanding debt and redeemable preferred stock in exchange for US$570 million in cash.
