Continuing its string of solid quarterly results, Nextel Communications Inc. posted a 31-percent year-over-year increase in total revenues from $2.4 billion during the first quarter of 2003 to $3.1 billion this year and an 184-percent increase in net income from $208 million last year, a return of 20 cents per share, to $591 million this year, a return of 51 cents per share.
Nextel’s robust financial results were supported by 474,000 net customer additions during the first quarter, which were in line with analysts estimates and just below the 480,000 subscribers the carrier added during the first quarter of 2003. In addition, Nextel posted a year-over-year reduction in customer churn from 1.9 percent in 2003 to 1.7 percent this year and an increase in average revenue per user from $67 during the first quarter of 2003 to $69 this year.
Nextel also reported that it added 132,000 subscribers, which were not included in its customer growth results, through its Boost Mobile L.L.C. subsidiary, and it counted 537,000 total Boost customers at the end of the first quarter.
Following its strong quarterly showing, Nextel revised its full-year guidance from 1.8 million net customer additions to 1.9 million additions for the year and from $1.6 billion to $1.7 billion in free cash flow for the year.
