OVERLAND PARK, Kan.-Sprint PCS posted 390,000 direct customer additions during the fourth quarter of 2003, compared with 250,000 subscribers added during the fourth quarter of 2002. The carrier said it added 554,000 customers through its wholesale channels and 86,000 subscribers through its affiliates during the fourth quarter of last year.
Contributing to the strong customer growth was a reduction in customer churn from 3.5 percent during the fourth quarter of 2002 to 2.7 percent last year, which more than offset a 6.5-percent decline in gross customer additions. Sprint PCS noted customer churn increased following the implementation of local number portability in late November, but was immaterial to overall quarterly churn.
Average revenue per user remained steady year-over-year at $62, while the cost per gross addition increased nearly 15 percent to $425, which the carrier attributed to increased rebates as a result of higher take rates on two-year contracts.
Total revenues increased more than eight percent year-over-year, from $3 billion during the fourth quarter of 2002 to $3.3 billion last year. The growth was not enough to offset one-time charges during the quarter that dropped net losses more than 14 percent from $578 million during the fourth quarter of 2002, or a loss of 58 cents per share, to $661 million last year, or a loss of 66 cents per share.
