KIRKLAND, Wash.-Nextel Partners Inc. reported $4.7 million in net income during the first quarter of the year or a return of 2 cents per share, which the carrier noted was its first quarter of positive net income and a dramatic increase compared with the $50.2 million net loss, or a loss of 20 cents per share, that the carrier reported for the first quarter of 2003. Nextel Partners also posted $15.3 million in free cash flow during the first three months of this year compared with negative free cash flow of $68.2 million last year.
Bolstering Nextel Partners financial growth was a 47 percent year-over-year increase in total revenues from $207.8 million during the first quarter of 2003 to $306.1 million this year.
The carrier also reported that it added 88,800 subscribers during the first quarter of this year, which was in line with analyst estimates and slightly ahead of the 87,000 subscribers the carrier added during the first quarter of 2003. Average revenue per user and customer churn also came in better than expected for the quarter at $67 and 1.5 percent respectively.
Nextel Partners’ strong opening quarter to the year led the carrier to raise full-year guidance on net subscriber additions from 330,000 customers to 340,000 customers and lower customer churn from 1.8 percent to 1.7 percent.
In addition to releasing first-quarter results, Nextel Partners initiated a cash tender offer and consent solicitation for all of its outstanding 11-percent senior notes due 2010 that are scheduled to expire May 25. The carrier said it will pay $35 per $1,000 principal amount of notes tendered prior to the expiration date as a consent payment.
