Sprint PCS affiliate Alamosa Holdings Inc. said it added 16,000 subscribers during the third quarter of this year, ending the quarter with 693,000 total subscribers. The carrier’s third-quarter customer growth was down from the 20,000 subscribers it added last year and from the 24,000 customers Alamosa added during the second quarter of this year.
Customer churn improved year-over-year from 3.8 percent during the third quarter of 2002 to 2.9 percent this year, but increased from the 2.5 percent the carrier posted during the second quarter of this year. Average revenue per user dropped from $60 during the third quarter of 2002 to $57 this year, but remained constant with second-quarter 2003 results.
Financially, Alamosa posted $166.4 million in total revenues during the third quarter of 2003 compared with $147.4 million during the third quarter of 2002. Roaming revenues also increased slightly from $39.1 million last year to $41.1 million this year.
Net losses dropped from $320.8 million during the third quarter of 2002, a loss of $3.45 per share, to $17.5 million this year, a loss of 19 cents per share. Alamosa noted third-quarter 2002 net losses included a $291.6 million impairment charge.
Alamosa’s management also updated its full-year guidance, noting it expects the carrier to post approximately $100 million in adjusted earnings before interest, taxes, depreciation and amortization compared with its previously announced $90 million in EBITDA; it expects to be free cash flow positive for the full year, excluding cash interest paid out of escrow; and it expects customer churn to average less than 3 percent for the full year.
“We are pleased with the continued improvement in our overall financial results,” said David Sharbutt, chairman and chief executive officer of Alamosa. “Given the competitive operating environment in wireless, we are pleased with our execution this year. Our highest priority remains on improving the operating and financial health of the company as we conclude 2003 and move forward into 2004.”
